Name of the Project
Baobab phosphate project.

Location
Senegal.

Client
Avenira.

Project Description
Baobab has an inferred mineral resource estimate of 114-million tonnes at 19% diphosphorus pentoxide (P₂O₅) and an indicated mineral resource estimate of 31.7-million tonnes at 20.6% P₂O₅ at a 15% cutoff.

The Avenira board has in this context approved a new strategic plan for the Baobab phosphate project.
The plan will be undertaken in two stages.

Stage 1 will deliver a capacity and performance expansion of the existing Baobab processing facility and increase current production to 500 000 t/y.

A flotation line will be added to improve P₂O₅ recovery from an estimated 50% currently to about 70% and to reduce the silica assay of the Gadde Bissik phosphate rock concentrate product.

A drying process unit will also be added to control product moisture at the commercially required level, including during the yearly wet season.

Stage 2 will entail the construction of a second production line delivering about one-million tonnes a year of additional capacity.

The resulting combined capacity of 1.5-million tonnes a year will provide sufficient product for Avenira to supply a dedicated phosphoric acid facility.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Both stages of the strategic plan will require the raising of additional funding. As a result, Avenira is undertaking three funding streams.

It has entered into binding funding agreements with each of its major shareholders – Agrifos Partners and Tablo Corporation – making available an unsecured bridge loan of $1.44-million and $2.16-million respectively to Avenira, each at a 6% interest rate.

The company will also conduct a nonrenounceable pro rata entitlement offer to raise between A$7-million and A$13-million.
The proceeds from the bridge loans and the entitlement offer will be used to fund engineering studies and upfront capital costs required for Stage 1, as well as ongoing working capital requirements. A portion of the proceeds from the entitlement offer will be used to repay the bridge loans in full.

Thirdly, Avenira will seek additional financing to fund the remainder of Stage 1 not covered by the bridge loans or the entitlement offer, and all of Stage 2 of the strategic plan. Details of this will be announced in due course.

Duration
The expanded plant is expected to be fully commissioned in stages within 12 to 18 months of funding.

Latest Developments
Engineering studies are under way to provide a detailed design and capital and operating cost estimates for Stage 1.
Prefeasibility work for Stage 2 is projected to start before the end of 2017.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Avenira, tel +61 8 9264 7000 or email frontdesk@avenira.com.