PERTH (miningweekly.com) – Phosphate developer Avenira will raise A$2.8-million through a share placement to fund the completion of a feasibility study to expand the Baobab project, in Senegal.
Avenira will place more than 139.9-million shares, at a price of 2c each, with the company, saying on Tuesday that it has received strong support from major shareholders Agrifos Partners, Tablo Corporation and Agrifields, who have committed A$2-million of the raising, subject to shareholder approval.
The placement will be completed in two tranches, with the first 40-million shares to be issued under the company’s existing placement capacity.
The second tranche of more than 99.9-million shares, will be issued subject to shareholder approval.
Funds raised will be used to complete the feasibility study on the Baobab expansion project, as well as for general working capital. The feasibility study is due for completion in the fourth quarter of this year, with Avenira expected to initiate a bankable feasibility study phase thereafter.
“The feasibility study under way for the Baobab project considers a major expansion of the existing Gadde Bissik mine and we are keen to develop this project in an environment of increasing global food demand, production yield improvement and population growth,” said Avenira chairperson Brett Clark.
“Given recent positive upward market movements in the phosphate rock benchmark pricing, we are also planning our review of our Wonarah project, in the Northern Territory, which is one of the largest phosphate deposits in Australia and 100% owned by Avenira.”