The Australian phosphate developer’s exploitation permit was granted by Presidential Decree.
Avenira Limited (ASX:AEV) reports its subsidiary Baobab Mining and Chemicals Corporation S.A. has received a Senegalese Government Exploitation Permit for the Gadde Bissik area within its Baobab phosphate project in the Republic of Senegal. The permit was granted by Presidential Decree.
As quoted from the press release:
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 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 percent freecarried 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.
This permit approval is a major milestone for Avenira’s Baobab feasibility study, currently projected to complete in the December 2018 quarter. Following this, Avenira intends to initiate a “bankable” feasibility study phase.