Avenira advances Wonarah towards first phosphate shipment with A$85 million Hebang facilities

Wonarah funding moves from proposal to facility

Avenira Limited (ASX:AEV) has put a more substantial funding structure around its plan to start moving phosphate from Wonarah, with Hebang facilities providing access to up to A$85 million after the September quarter. The package comprises a A$50 million term loan for project development and a A$35 million revolving facility for working capital and supply-chain requirements.

The facilities have an eight-year term and carry interest at the Reserve Bank of Australia cash rate target, without an additional margin. Principal and cash-interest payments are deferred for the first two years, with interest capitalised monthly during that period. The company says the facilities are expected to fund Wonarah through first shipment and support ongoing direct shipping ore operations, although access remains subject to the facility arrangements and the broader project conditions.

Four-year offtake covers most expected DSO output

Hebang has also agreed to take 500,000 wet metric tonnes of phosphate rock a year for four years from commercial commencement, equivalent to about 83% of Wonarah's expected annual direct shipping ore production. The agreement makes Hebang the exclusive distributor in mainland China, subject to it purchasing at least 90% of the available contracted quantity in each year.

The commercial framework is not yet a fixed-price contract. Pricing will reference mainland China benchmarks and, where relevant, agreed end-customer pricing, while the Minimum FOB Netback methodology, product specifications and quality adjustments still have to be finalised. Additional product-qualification drilling began in October to support those specifications and pricing discussions, following the Hebang offtake agreement that was reported earlier in September.

Infrastructure prepares for late-2026 pre-strip

Avenira is targeting pre-strip commencement in the fourth quarter of calendar 2026 and a first DSO shipment in the first half of 2027, subject to approvals, funding and operational readiness. The existing 24-person Minardji Camp has been refurbished, tenders for a further 72 rooms have been finalised, and mobile mining equipment has begun arriving on site.

The company has completed tender evaluations for the Barkly Highway intersection and haul road, while work continues on the transport chain from Wonarah to the Argyle Rail Siding near Tennant Creek, then by rail to Darwin Port. Rail and port agreements are under commercial and legal review. A Mine Management Plan variation is also being prepared for lodgement in the December quarter, with the aim of extending the approved mining plan beyond 2028.

Capital raising supports the development plan

During the quarter, Avenira received A$8.79 million from a Hebang placement and used A$4 million of the proceeds to repay the drawn MLHK Vehicle 1 bridge loan, plus about A$0.1 million in interest. It also announced a three-for-two renounceable entitlement offer at A$0.006 a share, targeting approximately A$49 million before costs for Wonarah capital works and working capital. The raise had passed the 90% funding mark before the quarter's reporting date, according to earlier coverage.

Cash and cash equivalents stood at A$7.6 million at 30 September, including A$6.15 million of entitlement offer funds held on trust. Quarterly operating and investing cash outflows totalled about A$5.6 million, and the Appendix 5B calculated approximately 1.9 quarters of funding on quarter-end cash alone. That calculation predates the subsequent Hebang facilities and does not represent the full funding position now described by the company.

Jundee South drilling advances ahead of results

Gold exploration at Jundee South also moved into the field during the quarter. Air core drilling began in September after programme approvals and heritage surveys, with 79 of a planned 182 holes completed for 5,694 metres by 30 September. The full programme covers 11,590 metres within an approved A$2.637 million exploration budget, with results expected in the December quarter.

Soil sampling has been completed on two tenements and gravity surveys were completed on three others by 19 October. A reverse-circulation programme targeting depths of about 300 metres is planned to begin in November. Those results may provide a separate exploration catalyst, but the more immediate test for Avenira remains whether product qualification, approvals and the mine-to-port chain can be converted into a credible start to Wonarah operations.