Athena Resources reports significant progress on its Byro Magnetite Project alongside a successful $2.67 million entitlement offer, strengthening its financial position for upcoming development phases.
- Completion of $2.67 million fully underwritten entitlement offer
- Advancement of metallurgical testing at Byro Magnetite Project
- Fenix Resources increases stake to nearly 29%
- Strong cash position of over $1 million at quarter end
- Ongoing exploration and classification work to enhance processing flowsheet
Byro Project Progress and Metallurgical Advances
Athena Resources Limited (ASX: AHN) has reported steady progress during the December 2024 quarter, focusing on technical and metallurgical developments at its flagship Byro Magnetite Project in Western Australia's Mid-West region. The company has been conducting an independent technical review and advancing test work at the Iron Ore Tech Centre (IOTC), including preparing samples for innovative classification processes and a revolutionary iron recovery method.
These metallurgical efforts aim to optimize the secondary grinding and classification stages of the Byro processing flowsheet, potentially improving the recovery of premium-grade magnetite with iron content exceeding 70%. Results from the new iron recovery process are anticipated in the current quarter, which could be a game-changer for the project's economics and environmental footprint.
Capital Raising and Strategic Shareholding
Financially, Athena successfully completed a fully underwritten one-for-two renounceable pro rata entitlement offer, raising approximately $2.67 million at an issue price of A$0.004 per share. The offer closed in late December 2024, with the shortfall shares placed to sophisticated investors and underwriter Fenix Resources Limited (ASX: FEX), which now holds a substantial 28.97% stake in Athena.
This capital injection bolsters Athena's balance sheet, with cash and cash equivalents reaching $1.07 million at the end of the quarter. The company reported net cash used in operating and investing activities, reflecting ongoing exploration and development expenditures, but the fresh funds provide a runway of approximately 3.6 quarters based on current outgoings.
Corporate Governance and Outlook
Payments to related parties during the quarter amounted to $98,477, covering director fees and consultancy services, consistent with prior periods. Athena's board, led by Chairman John Welborn, remains focused on advancing the Byro Project's technical readiness and securing further value from its high-grade iron ore assets.
With the Byro Project strategically located 410km from the Port of Geraldton and offering potential for premium magnetite supply to emerging green steel and industrial mineral markets, Athena is positioning itself to capitalize on evolving demand dynamics. The upcoming metallurgical test results and ongoing classification work will be critical milestones to watch.
Bottom Line?
Athena’s strengthened balance sheet and technical progress set the stage for pivotal developments at Byro in 2025.
Questions in the middle?
- What will the results of the new iron recovery process mean for Byro’s project economics?
- How will Fenix Resources’ near 29% stake influence Athena’s strategic direction?
- What are the next steps for Athena to transition Byro from exploration to production?