Phosphate company Avenira has announced plans to raise capital of as much as $15 million from investors for its Baoab phosphate project in Senegal. Perth-based firm said it would raise $13 million by way of a 9-for-20-entitlement offer priced at 4.8 cents a share. The price represents a 24 percent discount to its 30-day volume-weighted average price. The offer has been underwritten by major shareholders for around $12 million. The Australian company is also planning to raise another $2 million by a way of placement.
The capital raising forms the second stage of a three-part funding plan for its Baobab project, while the first stage being the securing of a $4.9 million loan from shareholders Agrifos and Tablo Corporation. The third stage is expected to comprise a combination of equity and debt, with Avenira flagging a “likely significant” capital raising within next year.
“Our immediate operations priority is to complete the required engineering and feasibility studies and secure offtake, approval and financing to deliver on this objective for shareholders,” CEO Louis Calvarin said. “We are 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.”
The Baobab project is 80% owned by Avenira, who is rapidly advancing it towards production. The company has been involved with the project since 2014 and acquired 100% of the project from Agrifos. In November 2015, Avenira secured community and environmental approval and during 2016 it was focusing on mine and processing plant construction.