Avenira announced a strategic investment from its largest shareholder, Sichuan Hebang Biotechnology.
The investment includes a $4.5 million two-tranche placement at $0.006 per new share, with Tranche 2 subject to shareholder and regulatory approvals.
Tranche 1 of the placement will raise $1.7 million through the issuance of 285 million shares on or around Aug. 2.
Tranche 2 aims to generate $2.8 million via the issue of 465 million shares, pending necessary approvals.
Sichuan Hebang will also provide an unsecured loan equivalent to the Tranche 2 proceeds, which will be repaid upon shareholder approval or within 12 months.
Funds from the investment will support the Yellow Phosphate and Lithium Ferro Phosphate study work and general working capital needs.
After completing Tranche 1, Sichuan Hebang is entitled to appoint an executive chairman, two board directors, a CEO, and a CFO.
Mo Yang will take on the roles of executive chairman and CEO, with Ran Mo and Shixing Zhang joining as directors.
Brett Clark, Avenira Chairman and CEO, remarked, "We are very pleased to welcome Hebang, our major shareholder with a further investment and increased participation in Avenira. The increase in cooperation with Hebang creates an opportunity for Avenira to accelerate the downstream development of the Yellow Phosphorus Project, adding substantial value to Wonarah resource."
Zhenggang He, actual controller of Sichuan Hebang added, "We have been working with the Avenira team for some time. We are interested in furthering our collaborative relationship by investing in the company and participating on the board and management team."