Avenira Ltd (AEV) - ASX Release

Avenira receives exploitation permit for Baobab Phosphate Project

  • Baobab Exploitation Permit granted by the Government of Senegal

  • Permit valid for a 20-year renewable term and covers a 75 km2 area

  • Within the Permit Area, Indicated Resource estimated at 41.8 million tonnes at 19.4% P2O5 and Inferred Resource estimated at 247 million tonnes at 16% P2O5, both at a 10% P2O5 cut-off grade

  • Major Baobab Expansion and Upgrade Project milestone

  • Key step for Avenira's ongoing Feasibility Study

Avenira Limited (‘Avenira’ or the ‘Company’) (ASX: AEV) is pleased to announce that Baobab Mining and Chemicals Corporation S.A. (‘BMCC’), an 80%-owned subsidiary of the Company, has received a Senegalese Government Exploitation Permit (‘Permit’) for the Gadde Bissik area within its Baobab Phosphate Project in the Republic of Senegal. The permit was granted by Presidential Decree.

Avenira’s Managing Director and CEO Louis Calvarin said, “The grant of this Exploitation Permit is a major milestone for our Baobab Expansion and Upgrade investment project. Receiving the permit underpins all future steps including funding the project implementation, and increases our Company’s Feasibility Study momentum. I would like to thank the Government of Senegal and the Baobab project team for all their work and support reaching this point.”

The Permit covers an area of 75 km2 around the former Gadde Bissik Small Mine Permit (see Figures 1 and 2 below) and is valid for an initial renewable period of 20 years.

Following the restructuring triggered by this Permit grant, the Senegalese Government will hold a 10% free-carried interest in the legal entity owning the Permit, and the new structure will be exempt from paying certain taxes. The new Permit covers the area identified by Avenira as offering the best economic potential for commercial phosphate rock mining. It surrounds the Small Mine operation launched by Avenira through BMCC in 2016.

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