Avenira Limited - Annual Payment to Arruwurra Aboriginal Corporation - 26 July 2024
AVENIRA LIMITED (AEV) Share Update July 2024 Friday 26th
Avenira Limited Announces Annual Payment to Arruwurra Aboriginal Corporation
Avenira Limited (ASX: AEV) has announced the details of its annual payment to the Arruwurra Aboriginal Corporation as part of their ongoing Mining Agreement.
Instant Summary:
- Avenira to issue 70 million Ordinary Shares to Arruwurra Aboriginal Corporation.
- A$152,000 cash payment to be made in October 2024.
- Strong working relationship between Avenira and Arruwurra highlighted.
Annual Payment Details
Avenira Limited (ASX: AEV) has announced the composition of its annual payment to the Arruwurra Aboriginal Corporation under the terms of their Mining Agreement. The payment will include 70 million Ordinary Shares in Avenira, which are to be issued on or before 30 July 2024. Additionally, a cash payment of A$152,000 will be made in October 2024.
Executive Chairman Brett Clark expressed gratitude towards the Arruwurra Aboriginal Corporation and its Board, particularly Chairman Allen Punch, for the transparent and cooperative relationship developed over the past year. This collaboration has been pivotal in progressing the Direct Shipping Ore (DSO) project assessment and preliminary works towards Avenira's Yellow Phosphorous project.
Significance of the Agreement
The Mining Agreement, initially announced on 2 July 2023, has established a framework for ongoing collaboration between Avenira and the Arruwurra Aboriginal Corporation. This partnership aims to foster mutual benefits and opportunities for both parties, particularly in the context of Avenira's mining projects.
The issuance of shares and the cash payment are part of the agreed terms to ensure that the Arruwurra Aboriginal Corporation receives fair compensation and benefits from the mining activities conducted on their land.
The issuance of 70 million shares may lead to a dilution of existing shares, which could affect Avenira's stock price. However, the strong relationship with the Arruwurra Aboriginal Corporation and the progress in key projects may offset potential negative impacts. Investors should consider the long-term benefits of this partnership and the strategic importance of the Yellow Phosphorous project.
Investor Reaction:
Investors and analysts have generally reacted positively to the announcement, noting the importance of maintaining strong relationships with local communities. The issuance of shares and the cash payment are seen as necessary steps to ensure the success of Avenira's projects and the company's future growth.
Conclusion:
Investors should monitor Avenira's ongoing projects and the impact of the share issuance on the stock price. The company's ability to maintain strong community relationships and progress its key projects will be crucial for long-term success. Stay informed on Avenira's developments and consider the potential benefits of this strategic partnership.