Avenira Ltd. on June 9 announced plans to raise funds that it will use to realize a new strategic plan to expand the Baobab phosphate project in Senegal.
The company closed a share purchase plan that will give it A$2.5 million.
Major shareholders Agrifos Partners and Groupe Mimran affiliate Tablo Corp. will provide unsecured bridge loans of US$1.44 million and US$2.16 million, respectively. Avenira also plans to raise at least A$7 million and up to A$13 million in a pro rata rights offer at no more than 10 Australian cents per share within five months. Agrifos and Mimran have committed to underwrite any shortfall to a maximum of A$7 million.
The new strategic plan for Baobab developed by the team of Managing Director Louis Calvarin envisages a capacity and performance expansion of the existing processing plant as stage 1, increasing production to 500,000 tonnes per year and improving product quality. Stage 2 will see construction of a second production line which will add 1 million t/y of capacity.
The company expects the initial expansion of the existing plant to be commissioned within 12 to 18 months of funding and plans to start pre-feasibility work on stage 2 before the end of the year.
Some additional funding will be required to finance part of stage 1 and all of stage 2, and Avenira will disclose details for this in due course.