PERTH (miningweekly.com) – Phosphate producer Avenira is hoping to raise A$13-million through an entitlement offer, to repay debt and complete engineering studies for the expansion of its Baobab project, in Senegal.
The company on Monday said that it had received strong support from major shareholders to underwrite a significant majority of the proposed pro-rata entitlement offer.
The company noted that the pre-commitments and underwriting support placed Avenira in a strong position heading into the entitlement offer, which was progressing towards a launch later this month.
Major shareholder and Baobab project partner Tablo Corporation has committed to a total of $3.36-million, subscribing for about A$2.26-million in shares with the balance contributing towards the underwriting of any shortfall.
Meanwhile, fertiliser company Agrifos has agreed to subscribe for $2.24-million in shares, while Agrifields DMCC has agreed to commit up to A$5.34-million. The company will subscribe for A$690 000 in shares and has agreed to underwrite a further A$4.65-million of any ultimate shortfall.
“This is a very positive outcome for Avenira and the Baobab phosphate project,” said Avenira MD and CEO Louis Calvarin.
“The level of support we continue to receive from our major shareholders is testament to the quality of the Gadde Bissik mine product and to the long-term potential of the operation. We have set out a clear strategic plan to deliver a capacity and performance expansion of the existing processing facility to improve recovery and product grade. This funding continues to underpin this strategic plan, and we will contribute to engineering studies and other upfront costs.”