Aura Energy Limited (ASX:AEE, AIM:AURA) has received firm commitments to raise approximately A$8.8 million via an oversubscribed share placement to institutional, sophisticated and professional investors.
“I am very pleased with the support shown from existing and new shareholders in this placement,” CEO Dr Will Goodall said.
“The uranium market is strong, reflecting the rapidly emerging understanding of the critical role that nuclear energy will play in the energy mix of a Net Zero Emission world.
“ The geopolitical situation will continue to introduce some volatility, however the fundamental lack of primary supply in the uranium market should continue to underpin a strengthening position for near term development projects, such as Aura’s Tiris Project.
“In this placement we have seen very strong support from existing shareholders and a strengthening of key institutions on our register, in both Australia, the United Kingdom and Canada.
“The funds raised will allow us to complete the resource enhancement program at Tiris as announced on 9 February 2022, and importantly will also allow us to commence the engineering phase for the Tiris Project, securing an Engineering Consultant and initiating the Front End Engineering Design (FEED) study, progressing us towards a decision to mine in Q4 2022.
“The remainder of this year will see Aura rapidly progress the Low CAPEX, Low Operating cost Tiris Uranium Project.
“We plan to enhance and expand the Tiris resource, finalise regulatory discussions with the Mauritanian government, progress marketing and financing conversations and take engineering to a point where we can move into procurement and construction through 2023.
“We are excited by the journey and look forward to bringing the Tiris Project to a stage where we are producing uranium, supporting the global push to minimise carbon emissions.”
The Tiris Project is a major greenfields uranium discovery in Mauritania, where Aura has announced a Resource Upgrade in August 2021 of 10% or 5.0 million lb U3O8 bringing the total JORC Resource to 56 Mlbs (at a 100 ppm U3O8 lower cut-off grade).
Aura completed a Definitive Feasibility Study for the Tiris Uranium project in August 2019, with a capital estimate update in 2021, to reflect current global pricing, reconfirming Tiris as one of the lowest capex, lowest operating cost uranium projects.
In October 2021, the company entered a US$10m Offtake Financing Agreement with Curzon, which includes an additional up to US$10m facility, bringing the maximum available under the agreement to US$20m.
In 2022, Aura will continue to transition from a uranium explorer to uranium producer, to capitalise on the rapidly growing demand for nuclear power as the world continues to shift towards a decarbonised energy system.
For further information please visit: https://www.auraenergy.com.au/
