How Avenira’s $7.57M Boost and Approvals Propel Wonarah Phosphate Forward
Avenira Limited has advanced its Wonarah Phosphate Project with Northern Territory Government approval of its Mine Management Plan and secured $7.57 million through a placement to Hebang, while deferring operational start to optimize costs.
- Northern Territory Government approves Mine Management Plan for 1.3Mt Direct Shipping Ore
- Key infrastructure works completed including Jemena pipeline crossing and Barkly Highway intersection design
- Operational commencement deferred to refine cost and logistics strategies
- Raised $7.57 million via placement to Hebang with strong shareholder support
- Exploration data review ongoing at Jundee South Gold Project
Regulatory Milestone Achieved
Avenira Limited (ASX – AEV) has reached a significant development milestone with the Northern Territory Government’s approval of its revised Mine Management Plan (MMP) for the Wonarah Phosphate Project. This plan covers open pit designs for 1.3 million tonnes of Direct Shipping Ore (DSO) at the Arruwurra deposit, alongside supporting roads and infrastructure. The approval marks a critical step forward in transitioning the project from exploration to potential production.
Infrastructure and Operational Readiness Progress
During the quarter, Avenira advanced foundational workstreams essential for operational readiness. Notably, the company executed a pipeline crossing agreement with Jemena and completed construction of the crossover bridge. Refurbishment of the Arruwurra camp commenced, including refrigeration and electrical commissioning. Additionally, explosives management systems were established and licensing applications submitted. The design tender for the Barkly Highway intersection was awarded following engagement with the Department of Infrastructure, positioning the project for upcoming construction tenders.
Strategic Deferral to Optimize Project Economics
While progress is evident, Avenira has deferred the commencement of operations beyond initial expectations. This decision reflects a strategic approach to optimize mining costs and logistics, aiming to enhance project cost efficiency and investor returns. The company continues to evaluate development strategies, contracting, and scheduling in parallel with regulatory and funding considerations. This cautious stance underscores the complexities of advancing a mining project in a remote region and the importance of delivering sustainable economic benefits.
Funding and Shareholder Support
Post-quarter, Avenira held a General Meeting where shareholders overwhelmingly approved a placement of 1.08 billion shares to Hebang at $0.007 per share, raising $7.57 million. This capital injection provides critical funding to support ongoing project development and operational readiness activities. Despite a modest cash balance of $518,000 at quarter-end, the company’s available financing facilities and recent capital raise position it to continue advancing its objectives.
Exploration Outlook at Jundee South
Beyond Wonarah, Avenira is reviewing extensive aeromagnetic survey data from its Jundee South Gold Project in Western Australia. The survey, covering over 29,000 linear kilometres, aims to refine geological insights and identify target areas for future exploration. While no new drilling results were reported this quarter, the ongoing data analysis signals continued commitment to expanding the company’s resource base.
Bottom Line?
Avenira’s methodical progress and recent capital raise set the stage for critical next steps, but investors should watch closely as operational timing and cost optimizations remain fluid.
Questions in the middle?
- When will Avenira finalize its beneficiation processing feasibility study and what impact will it have on project scale?
- How will the deferred start affect overall project economics and investor returns?
- What exploration targets will emerge from the Jundee South aeromagnetic survey review?
