Tawana Resources NL (ASX: TAW) announced that Lithco No.2 Pty Ltd , its wholly-owned subsidiary which holds Tawana’s 50 percent interest in the Bald Hill lithium and tantalum mine, has executed a binding AU$5 million loan agreement with Red Coast Investment Limited. The funds will be used for development at the Bald Hill project and working capital.
Highlights are as follows:
- Interest of 11% per annum payable quarterly in arrears;
- Single draw down before 30 June 2018;
- Maturity and single repayment date of 31 December 2019;
- Loan may be prepaid at any time before maturity without penalty;
- No facility fees;
- Draw down conditional on customary condition precedents, including provision of security over Lithco’s interest in the DMS plant.