Avenira Limited (ASX:AEV) Terminates Aleees Agreement and Prioritises Wonarah Development
Termination of Aleees Agreement
Avenira Limited (ASX: AEV) has terminated its License and Technology Transfer Agreement and Subscription Agreement with Advanced Lithium Electrochemistry Co Ltd (“Aleees”) effective 11 February 2025. The termination, agreed mutually, means Avenira is not required to make the licence payment due on 1 January 2025 or any future payments. As a result, the Performance Rights held by Aleees have lapsed, releasing both parties from all claims and liabilities related to the agreements.
Wonarah Development Pathway
The Avenira board has prioritised the Wonarah Phosphate Project with a phased development strategy aimed at disciplined capital allocation and sustainable growth. Key phases include:
1. **Early Revenue Generation – Stage 2 Direct Shipping Ore (DSO):** Development is underway, leveraging existing Mining Authorisation 1170-01, with operations expected to commence in late Q3 or early Q4 2025.
2. **Regulatory and Technical Studies:** Environmental studies and EPA assessments are progressing to support future developments, including the Flotation Project, Stage 3 DSO, YP Project, and TPA Project.
3. **Feasibility Study – Flotation, Stage 3 DSO:** Aims to unlock the economic potential of Avenira’s 812Mt resource base by upgrading to commercial-grade products, enhancing scalability and viability.
4. **Future Prospects – Downstream Production:**
– **YP Project:** Targets global demand for high-grade phosphorus products across agriculture, chemicals, and renewable energy sectors.
– **TPA Project:** Produces high-purity phosphoric acid for specialized applications, broadening Avenira’s product portfolio and diversifying revenue streams.
Executive Comments
Brett Clark, Deputy Chairman, stated, “This strategic shift allows the Avenira Board and Management to re-focus their efforts on a new development pathway that provides Avenira the opportunity for early revenue generation in H2 2025.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.