3 June 2024
Strategic funding process to
progress development of the Tiris Uranium Project
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Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or "the Company") is pleased to announce it has
commenced dual funding workstreams aimed at underpinning the
development of the Company's flagship Tiris Uranium Project
("Tiris") in
Mauritania.
Aura has appointed Orimco Pty Ltd
("Orimco") to arrange debt
funding for Tiris and has also engaged Macquarie Capital
(Australia) Limited ("Macquarie") to progress a process to
identify and engage with potential strategic investors in relation
to a potential strategic investment in Tiris and Aura. The
strategic funding process follows Aura's recently completed Front
End Engineering ("FEED")
Study which highlighted Tiris' robust economics (NPV8 US$ 388M, IRR
36%)[1] and long-term growth
opportunities.
Aura has received strong inbound
interest from both highly credentialled debt providers and
strategic investors who recognise the potential undeveloped future
value at Tiris. The aim of this funding process is to deliver the
optimal funding package, de-risk the development of Tiris,
optimising equity requirements and to maximise the value of Tiris
for Aura shareholders.
The team at Orimco has extensive
experience in arranging bespoke debt programs for West African
resources projects and has significant and valuable exposure
working across a broad range of commodities, projects and locations
including Mauritania.
Macquarie has been engaged to assist
with managing the strategic process with its role complementary to
Aura's debt adviser, Orimco, with the objective of achieving an
integrated funding solution for Tiris.
Following the completion of the FEED
study, the renegotiation of offtake arrangements with
Curzon[2] and the completion of the recent
resource drilling program, Aura is preparing for a decision to mine
in late 2024 or early 2025.
The decision to mine necessitates
the coming together of numerous key steps, including:
·
Resource and mine planning updates following the
resource drilling program
·
Establishment of an owner's team
·
Finalisation of the construction scope and
budget
·
Commitments to early works including water and
electricity
·
Government development consents
·
Arrangements with key offtake partners
·
Financing for the project development
Aura expects to make additional
announcements in relation to each of these elements over the
forthcoming months.
Aura Energy's MD and CEO Andrew Grove
commented:
"The recent FEED Study ASX release concluded the Tiris Uranium
Project is a near term, low cost, long life mine with exceptional
further growth opportunities1 and recent offtake
agreement further enhanced the economics with a project
NPV8% of US$388M and IRR 36%, both post tax[3].
"The appointment of Orimco as a debt advisor and Macquarie
investigating strategic investment options are critical steps in
advancing Tiris as we work towards a final investment decision at
the end of 2024.
"We look forward to updating investors and other stakeholders
as we continue to progress the Tiris Uranium Project through to a
final investment decision and then into
production."
ENDS
The Board of Aura Energy Ltd has
approved this announcement.
This Announcement contains inside
information for the purposes of the UK version of the market abuse
regulation (EU No. 596/2014) as it forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018
("UK MAR").
For
further information, please contact:
Andrew Grove
Managing Director and CEO
Aura Energy Limited
agrove@auraee.com
+61 414 011 383
|
Paul
Ryan
Morrow Sodali
Investor & Media
Relations
p.ryan@morrowsodali.com
+61 409 296 511
|
SP
Angel Corporate Finance LLP
Nominated Advisor and
Broker
David Hignell
Kasia Brzozowska
Grant Barker
+44 203 470 0470
|
About Aura Energy (ASX: AEE, AIM:
AURA)
Aura Energy is an Australian-based
mineral company with major uranium and polymetallic projects in
Africa and Europe.
The Company is focused on developing
a uranium mine at the Tiris Uranium Project, a major greenfield
uranium discovery in Mauritania. The February 2024 FEED study
demonstrated Tiris to be a near-term low-cost 2Mlbs
U3O8 pa near term uranium mine with a 17-year
mine life with excellent economics and optionality to expand to
accommodate resource growth.
Aura plans to transition from a
uranium explorer to a uranium producer to capitalise on the rapidly
growing demand for nuclear power as the world shifts towards a
decarbonised energy sector.
Beyond the Tiris Project, Aura owns
100% of the Häggån Project in Sweden. Häggån contains a
global-scale 2.5Bt vanadium, sulphate of potash ("SOP") and uranium
resource. Utilising only 3% of the resource, a 2023 Scoping Study
outlined a 27-year mine life based on mining 3.5Mtpa.
Disclaimer Regarding Forward-Looking
Statements
This ASX announcement (Announcement)
contains various forward-looking statements. All statements other
than statements of historical fact are forward-looking statements.
Forward-looking statements are inherently subject to uncertainties
in that they may be affected by a variety of known and unknown
risks, variables and factors which could cause actual values or
results, performance or achievements to differ materially
from the expectations described in such forward-looking
statements. The Company does not give any assurance or
guarantee that the anticipated results, performance or
achievements expressed or implied in those forward-looking
statements will be achieved.