Avenira Limited finalised a $4.5 million strategic investment from Hebang Biotechnology and progressed key development milestones at its Wonarah Phosphate Project, signalling a focused push towards near-term production and long-term growth.
- Completed $4.5 million two-tranche placement from Hebang Biotechnology
- Submitted revised Mine Management Plan for Wonarah DSO operations
- Conducted dry season ecology survey at Wonarah to support environmental compliance
- Initiated aeromagnetic survey at Jundee South Gold Project
- Cash balance stood at $1.2 million with exploration expenditure of $0.9 million
Strategic Capital Injection from Hebang Biotechnology
Avenira Limited (ASX: AEV) has successfully completed a strategic two-tranche investment totaling A$4.5 million from its largest shareholder, Hebang Biotechnology (Hong Kong) Investment Limited. The placement, priced at A$0.006 per share, included an initial tranche of A$1.7 million completed in August 2024 and a second tranche of A$2.79 million approved by shareholders in November 2024. The funds from the second tranche were immediately utilised to repay an unsecured loan facility from Hebang, strengthening Avenira’s balance sheet and underpinning its development plans.
Advancing the Wonarah Phosphate Project
Avenira lodged a revised Mine Management Plan (MMP) for its flagship Wonarah Phosphate Project with the Northern Territory Government in December 2024. The updated MMP outlines an operational scale-up targeting Direct Shipping Ore (DSO) production from the Arruwurra deposit, supported by infrastructure developments such as haul roads, waste rock dumps, and a demineralisation plant. Approval of the MMP is anticipated in the first quarter of 2025, a critical regulatory milestone that will enable the company to commence operations in late 2025.
Complementing regulatory progress, Avenira completed a comprehensive dry season ecology survey across key project areas. This environmental baseline work, conducted by SLR Consulting, is integral to meeting compliance obligations and informs the upcoming wet season survey planned for May 2025. Concurrently, environmental assessments for a proposed phosphate beneficiation plant are underway, aiming to streamline future approvals and enhance project scalability.
Phased Development Strategy and Future Growth
The company is pursuing a disciplined, phased development pathway. Initial focus is on early revenue generation through Stage 2 DSO operations, leveraging existing mining authorisations. Parallel regulatory and technical studies are progressing to support subsequent stages, including flotation processing and downstream projects such as the YP Project and TPA Project, which target high-grade phosphorus products and phosphoric acid production respectively. These initiatives position Avenira to capture growing global demand across agriculture, chemical, and renewable energy sectors.
Exploration Momentum at Jundee South Gold Project
Beyond phosphate, Avenira commenced an extensive aeromagnetic survey over approximately 29,355 linear kilometres at its Jundee South Gold Project in Western Australia. Conducted by MagSpec Airborne Surveys, this advanced geophysical program aims to refine geological models and identify new exploration targets. Results are expected by late Q1 2025, potentially unlocking further value in this gold-rich region.
Financial Position and Outlook
At quarter-end, Avenira reported a cash balance of A$1.2 million, with exploration expenditure of approximately A$0.9 million during the period. No mining production or development costs were incurred this quarter, reflecting the company’s focus on preparatory activities ahead of operational commencement. Payments to related parties, including directors’ fees, amounted to A$263,000. The company acknowledges its current funding runway covers roughly one quarter of operations but remains confident in its ability to raise additional capital as needed, supported by its recent successful placement and shareholder backing.
Bottom Line?
With regulatory approvals and exploration results on the horizon, Avenira’s next quarter will be pivotal in transitioning from development to production.
Questions in the middle?
- When will the Northern Territory Government approve the revised Mine Management Plan?
- What commercial-grade products will emerge from the flotation and beneficiation studies?
- How will the aeromagnetic survey results influence exploration priorities at Jundee South?