Avenira (ASX:AEV) has secured up to $85 million in term facilities from major shareholder and strategic offtake partner Hebang Biotechnology (SSE:603077).
The loan fully funds Avenira’s 100%-owned Wonarah Phosphate Project through first shipment and ongoing direct shipping ore (DSO) operations.
The arrangements comprise a $50 million term facility for project development expenditure and a $35 million working-capital revolving facility for operating and supply chain requirements. Both feature an eight-year term at the Reserve Bank of Australia cash rate target with no additional margin.
The facilities include a two-year deferral on principal repayments and cash-interest payments, with interest capitalised monthly during the deferral period and cash interest payable quarterly thereafter.
Deputy Chairman Brett Clark says the facilities fully fund Wonarah, consistent with the company’s move to an owner-operator model as it progresses towards production and first shipment.
“The terms provide flexibility to support development and preserve cash during the early stages of operations,” Clark says.
“We thank Hebang for its continued support across equity, offtake and funding, which provides a stronger commercial foundation for the project.”
Clark says the company’s focus remains on progressing development while continuing to engage with other prospective customers and build the market for Wonarah phosphate rock, with a major offtake agreement already in place.
Avenira is an explorer and project developer with gold and phosphate assets in Western Australia and the Northern Territory.
Write to Paula Fabe at Mining.com.au
Main image: Avenira
