Fenix Resources (ASX:FEX) has entered into a binding agreement with Athena Resources (ASX:AHN) whereby the latter will subscribe for up to $1 million worth of convertible notes at $0.002 per share.
Fenix, which has a $177.12 million market capitalisation, says funding will be used to assist Athena in completion of the pending Scoping Study of Athena’s Byro Magnetite Project in Western Australia’s Mid-West region.
The Byro Project sits 340km northeast of the Port of Geraldton and hosts a magnetite mineral resource.
Notes will be available in 2 tranches, with the first tranche to be issued using Athena’s available placement capacity, while the second tranche will be issued subject to Athena shareholder approval.
If shareholder approval is not obtained within 3 months, the second tranche will not be issued.
Further, if both tranches of notes are issued and Fenix elects to fully convert the notes at the aforementioned price, it will, subject to any required Athena shareholder approval, become the largest shareholder in Athena with a 31.8% stake.
Fenix Resources is a mining, logistics, and port services business with assets in Western Australia.
Athena Resources is a Western Australia-based explorer focused on acquiring mineral projects with the potential to be developed into a profitable mining operations.
Write to Adam Drought at Mining.com.au
Images: Fenix Resources
