PERTH (miningweekly.com) – Phosphate and gold developer Avenira will raise A$3.4-million through a share placement and two-for-seven non-renounceable entitlement offer to advance its Jundee South gold project and its Wonarah phosphate project, in Western Australia and the Northern Territory respectively.
An initial A$2.2-million will be raised by a share placement to be conducted in two tranches, and priced at 0.8c a share.
The first tranche, consisting of 66.1-million shares, will be conducted under Avenira’s existing placement capacity, while a second tranche of 211.1-million shares will be issued subject to shareholder approval.
Avenira will also offer its existing eligible shareholders the opportunity to subscribe for two new shares for every seven shares held, also at an offer price of 0.8c each, to raise a further A$1.2-million.
The entitlement offer will be fully underwritten by Taylor Collison.
The offer price represented a 20% discount to Avenira’s last closing price on June 30, and a 27% discount to the company’s 15-day volume weighted average share price.
“We have been overwhelmed with support for the placement and we look forward to enabling exiting shareholders to participate in the entitlements offer,” said executive chairperson Brett Clark.
“We are excited to have the funding available to advance our projects. In particular, we are looking forward to drilling the Jundee South gold project with a programme testing the priority 1 targets commencing soon.”
In addition to the maiden drilling programme at Jundee South, Avenira will also continue working on a scoping study for Wonarah.