Avenira (ASX:AEV) received further investment commitment from shareholder Hebang Biotechnology Investment, a unit of Sichuan Hebang Biotechnology, according to a Monday filing with the Australian bourse.
The investment consists of an AU$7.6 million placement, through the issue of 1.1 billion shares at AU$0.007 apiece, subject to shareholder and regulatory approvals, increasing Hebang's interest in the company to 49%, the filing said.
Pending these approvals, Hebang has also agreed to provide an unsecured drawdown loan facility priced at nearly AU$7.6 million also subject to approval, the filing added.
The loan will have a minimum drawdown of AU$2 million per tranche and will accrue interest at 12% per annum, payable upon completion of the placement, the company said.
The funds from both the placement and the loan will be used to advance the company's direct shipping ore project and for general working capital purposes, the company added.
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