Join our daily newsletter At The Bell to receive exclusive market insights
- Mining company Avenira (AEV) has executed agreements with its substantial shareholder Au Xingao Investment
- Under the agreement, Au Xingao Investment will provide the company with a $3 million secured loan facility
- Avenira will primarily use the loan facility to fund capital of its Jundee South Gold Project
- The loan facility has a term of three years and comes with an interest rate of eight per cent per annum
- Avenira closed 18.18 per cent in the red to trade at 0.9 cents per share
Mining company Avenira (AEV) has executed agreements with one of its substantial shareholders, Au Xingao Investment.
Under the agreements, Au Xingao Investment will act as a lender to the company to provide a secured loan facility of $3 million. Avenira will primarily use the loan facility to fund capital of its Jundee South Gold Project, as well as any other purposes that the lender approves.
The loan facility will be secured by a mining mortgage over the company’s Wonarah Project and a general security deed over specific listed securities held by Avenira.
Under its material terms, the loan facility has an interest rate of eight per cent per annum. Accrued interest will be capitalised every six months, if it is not paid.
After 18 months, the lender may choose to convert the loan amount into ordinary shares in Avenira. This is likely to be based on the 30-day volume weighted average price of company shares prior to the conversion date.
Avenira must repay the original loan, plus interest, three years from the date the agreement is signed, unless the lender elects to convert the loan amount into ordinary shares at an earlier stage.
The company will have the right to prepay the loan at any time in the three-year period.
The loan facility from Au Xingao Investment is subject to Avenira obtaining approval from its shareholders. The company will seek this approval at a general meeting, which will be held in the coming months.
Avenira closed 18.18 per cent in the red to trade at 0.9 cents per share.
