Name of the Project
Bald Hill lithium mine.

Location
The project area is located 50 km south-east of Kambalda, in the Eastern Goldfields of Western Australia.

Project Owner/s
Alita Resources Limited. The company went into administration in 2019.

Project Description
The project comprises four mining leases, one mining lease application, 12 exploration licences, eight prospecting licences and one general-purpose lease totalling 790 km.

The Bald Hill mine comprises an openpit, a 1.2-million-tonne-a-year lithium dense-media separation (DMS) circuit and spiral circuits, waste-rock dumps, stores, a camp (including administrative and living quarters) and associated infrastructure.

A July 2017 prefeasibility study estimated initial production of 155 000 t/y of spodumene concentrate from the DMS and 260 000 lb/y of tantalum pentoxide from the tantalum processing facility.

Lithium concentrate is hauled on Binneringie road to the Port of Esperance.

Further feasibility work is being undertaken on a lithium fines circuit to treat stockpiled fines and middlings, which has the potential to add to production.

Potential Job Creation
About 200 people will be on site during the peak construction period.

Net Present Value/Internal Rate of Return
The project has an expected internal rate of return of 185%.

Capital Expenditure
A$42.20-million.

Planned Start/End Date
The project was commissioned in March 2018, with initial spodumene concentrate production capacity of 155 000 t/y. The first lithium concentrate shipment was completed in early May 2018.

Latest Developments
Galaxy Resources has joined the legal tussle to prevent embattled Alita Resources fulfilling a Deeds of Company Arrangement (Doca) with US-based lithium products group Austroid Corporation.

The administrators of Alita and its subsidiaries have entered into a Doca with Austroid, which, if effectuated, would result in Austroid’s acquiring Alita and its assets, including the Bald Hill lithium mine, with no return for any of Alita’s shareholders, including Galaxy Resources.

Lithium WA Investments, which is associated with Alita’s previous mining contractor, is seeking court orders to either place Alita into liquidation or enable the company to acquire Alita’s assets for A$55-million.

Galaxy has joined Lithium WA in the legal proceedings as a plaintiff, and will share the costs, along with fellow shareholder Tribeca Investment Partners.

The company has told shareholders that the liquidation of Alita, or the sale of its assets to Lithium WA ,will provide a better outcome than the nil return of the Doca, if effectuated.

Galaxy has agreed to fund 60% of any consideration payable by Lithium WA under its offer for the Alita assets, in the form of a convertible loan that, at Galaxy’s election, will convert into a 60% interest of the issued capital of Lithium WA.

If Alita is placed into liquidation, Galaxy has said that it will separately consider making an offer to acquire the company or its assets as any part of a liquidator sale process.

Bald Hill was placed on care and maintenance in 2019. Alita continues to meet environmental obligations, keep the tenements in good standing and maintain the relevant insurance.

Key Contracts, Suppliers and Consultants
Primero Group (engineering, procurement and construction contract).

Contact Details for Project Information
Tawana investor relations, tel +61 8 9489 2600 or email admin@tawana.com.au.