Avenira raises funds for phosphate project

Phosphate explorer Avenira has announced plans to raise up to $15 million from investors, while flagging another ‘significant’ capital raising in the coming year for its Baobab project in Senegal.

Perth-based Avenira said it would raise $13 million by way of a nine-for-20 entitlement offer priced at 4.8 cents a share.

The price represents a 24 per cent discount to its 30-day volume-weighted average price.

The offer has been underwritten by major shareholders for up to $12.3 million.

Avenira is also planning to raise a further $2 million by way of a placement, priced the same as the entitlement offer.

The raising forms the second stage of a three-part funding plan for its Baobab phosphate project, with the first stage being the securing of a $US4.9 million loan from shareholders Tablo Corporation and Agrifos.

The third stage is expected to comprise a combination of debt and equity, with Avenira flagging a ‘likely significant’ capital raising within the next 12 months.

“Our immediate operational priority is to complete the required engineering and feasibility studies and secure offtake, approvals and financing to deliver on this objective for shareholders,” managing director Louis Calvarin said.

“We are very pleased with the support of major shareholders, whose underwriting commitments ensure we will raise a minimum of $12.34 million to underpin our plan, and to offer this opportunity to all Avenira shareholders to invest in the company at a discounted price.”

Foster Stockbroking acted as lead manager to the raising.

Avenira shares were 10.7 per cent lower to 5 cents each at 11am.