Avenira (ASX:AEV) has secured an investment commitment from its largest shareholder, Hebang Biotechnology (Hong Kong) Investment, a wholly-owned subsidiary of Sichuan Hebang Biotechnology.
The investment includes a $7.6 million placement through the issuance of 1,081,000,000 new shares at $0.007 per share, subject to shareholder and regulatory approvals, which would increase Hebang’s stake in Avenira to 49%.
Additionally, Hebang has agreed to provide an unsecured drawdown loan facility of up to $7.6 million, with a minimum drawdown of $2 million per transaction (except for the final drawdown).
The loan carries a 12% per annum interest rate, capitalised and payable upon repayment of the principal, with repayment due upon completion of the placement or within 12 months of the first drawdown if the placement is not completed.
The funds will support the progression of Avenira's direct shipping ore Project and provide general working capital, to begin ore deliveries to port by late Q3 or early Q4 this year to enhance the value of the Wonarah phosphate resource.
At the time of reporting, Avenira's share price was $0.0090.