Fenix Resources is set to become Athena Resources’ largest shareholder in a bid to increase its exposure to magnetite – a key mineral in green steel production.
A total of 53 of Fenix’s 100 convertible notes in Athena will be converted to ordinary shares, resulting in 265 million ordinary shares in Athena being issued to Fenix.
This represents an interest of 19.84 per cent and will make Fenix Athena’s largest shareholder. Fenix may also have the opportunity to further increase this interest to 46.56 per cent under a new entitlement offer.
Fenix executive chairman John Welborn said the move is an opportunity to develop Fenix’s green steel initiatives.
“Fenix believes Athena represents a unique regional opportunity to develop a small-scale ultra high-grade magnetite iron ore producer which would demand a premium price as well as being ideal for any green steel initiatives,” Welborn said.
The Byro magnetite operation in Western Australia – Athena’s flagship project – will be key to Fenix’s magnetite plans.
“The work to date indicates the Byro magnetite project matches with Fenix’s skillset in low capital project development and regional logistics capabilities,” Welborn said.
“Fenix is pleased to take up a significant shareholding in Athena and to support the current capital raise which will provide funding to enable the Byro magnetite project to be advanced.”
Byro is situated in the mid-west of WA, approximately 410km north of the Port of Geraldton.
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