REG - Aura Energy Limited - A$9m Placement to fund Tiris Project development

Aura EnergyAnnouncement

17/12/2024 08:00

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RNS Number : 3794Q  Aura Energy Limited  17 December 2024

 

 

 
                                    17
December 2024

$9 million placement to accelerate the Tiris Uranium Project development

 

Not for release to US wire services or distribution in the United States
 
HIGHLIGHTS

 

§ A$9 million raised through strong backing from professional and
sophisticated investors

§ Sachem Cove Partners LLC, a leading international uranium investment group,
has committed A$6.5 million and will become a significant shareholder, holding
approximately 5.1% of Aura Energy's issued stock

§ The placement was also well supported by existing shareholders and
attracted several new high-quality investors

§ Funds will be used to advance development of the low-cost, high-value Tiris
Uranium Project, funding an early works program beyond the Final Investment
Decision (FID) expected in Q1 CY2025, with production targeted for 2026/27

 

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or the "Company") is pleased
to announce it has received firm commitments to raise approximately A$9
million through the issue of 64,285,714 fully paid ordinary shares ("Placement
Shares") at an issue price of A$0.14 per Placement Share ("Placement Price")
in a placement to professional and sophisticated investors ("Placement").

Funds raised from the Placement will be applied to progressing the development
activities at the Company's Tiris Uranium Project beyond FID including funding
of early works development activities at the Project, expected in Q1 CY2025,
with production, targeted for 2026/2027.

Petra Capital Pty Limited acted as Sole Lead Manager and Sole Bookrunner to
the Placement.

Aura Energy Managing Director and Chief Executive Officer, Andrew Grove said:

"We are delighted to welcome Sachem Cove as a significant shareholder in Aura.
Their extensive expertise in the uranium markets, both physical and equity,
underscores the quality and deep value at the Tiris Uranium Project and for
Aura's broader growth potential. This investment also reflects the significant
progress our team has made throughout the year in de-risking and advancing the
project toward development, targeted for 2025.

We extend our gratitude to our existing shareholders for their ongoing support
and participation in this raise, and we are pleased to welcome several new,
highly credentialled investors to our register.

The funds raised will enable us to continue advancing the Tiris Uranium
Project, and we look forward to updating shareholders as we progress toward
production."

 

Placement Summary

The Placement Shares will, upon their issue, rank equally with existing fully
paid ordinary shares in Aura.

The Placement Price of A$0.14 represents a 9.7% discount to the last closing
price, an 8.4% discount to the five-day volume-weighted average trading price,
and an 8.6% discount to the fifteen-day volume weighted average trading price
to 12 December 2024.

All Placement Shares will be issued utilising the Company's existing placement
capacity under the ASX Listing Rule 7.1A.

The Placement Shares are expected to settle on 20 December 2024 and be issued
on or around 23 December 2024. The Placement is not underwritten. A 6% cash
fee on funds raised is payable to the Sole Lead Manager.

Admission to trading on AIM

Application will be made for the 64,285,714 Placement Shares to be admitted to
trading on AIM (Admission). It is expected that Admission will become
effective on or around 20 December 2024.

Total Voting Rights

Following the Admission of the 64,285,714 Placement Shares, the total issued
share capital of the Company will consist of 912,748,141 ordinary shares of
no-par value each (Ordinary Shares). The Company does not hold any Ordinary
Shares in Treasury. Therefore, the total current voting rights in the Company
following Admission will be 912,748,141 and this figure may be used by
shareholders in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change in their interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.

Appendix 3B

The Company has also published an Appendix 3B on the ASX in conjunction with
the Placement. To view the Appendix 3G, click here:
http://www.rns-pdf.londonstockexchange.com/rns/3794Q_1-2024-12-17.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3794Q_1-2024-12-17.pdf)

ENDS

This announcement is intended to lift the ASX trading halt over the shares in
the Company.

This release has been approved by the Board of Aura Energy Ltd.

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).

All dollar amounts are in Australian dollars unless otherwise indicated.

Not an offer in the United States:

This announcement has been prepared for publication in Australia and may not
be released to US wire services or distributed in the United States. This
announcement does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in the United States or any other jurisdiction. Any
securities described in this announcement have not been, and will not be,
registered under the US Securities Act of 1933 and may not be offered or sold
in the United States except in transactions exempt from, or not subject to,
the registration requirements of the US Securities Act and applicable US state
securities laws.

For further information, please contact:

 Andrew Grove                SP Angel Corporate Finance LLP  Tamesis Partners LLP

 Managing Director and CEO

                           Nominated Adviser               Broker
 Aura Energy Limited

 grove@auraee.com            David Hignell                   Charlie Bendon

 +61 414 011 383

                           Adam Cowl                       Richard Greenfield

                             Devik Mehta                     +44 203 882 2868

                             +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 2024 Front
End Engineering Design (FEED) Study 1  (#_ftn1) demonstrated Tiris to be a
near-term low-cost 2Mlbs U(3)O(8) pa near term uranium mine with a 17-year
mine life with excellent economics and optionality to expand to accommodate
future 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) 2 
(#_ftn2) and uranium 3  (#_ftn3) resource. Utilising only 3% of the resource,
a 2023 Scoping Study 4  (#_ftn4) outlined a 17-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.

The Company has concluded that it has a reasonable basis for providing the
forward-looking statements and production targets included in this
announcement and that material assumptions remain unchanged. The detailed
reasons for this conclusion are outlined throughout this announcement, and in
the ASX Releases, "Scoping Study Confirms Scale and Optionality of Häggån",
5 September 2023; "Aura's Tiris FEED Study returns Excellent Economics" 28
February 2024; and "Tiris Uranium Project Enhanced Definitive Feasibility
Study", 29 March 2023.

The Company confirms that it is not aware of any new information materially
affecting the information included in the ASX and AIM announcements: "Häggån
Battery Metal Project Resource Upgrade Estimate" 10 Oct 2019; "Outstanding
Häggån Uranium Resource expands to 800 million pounds".

All material assumptions and technical parameters underpinning the Häggån
Project Mineral Resources Estimates continue to apply. The Company confirms
that the form and context in which the Competent Person's findings are
presented have not been materially modified from the original market
announcement.

 1  (#_ftnref1) ASX and AIM Release: 28 Feb 2024 - FEED study confirms
excellent economics for the Tiris Uranium Project

 2  (#_ftnref2) ASX and AIM Release: 10 Oct 2019 - Häggån Battery Metal
Project Resource Upgrade Estimate

 3  (#_ftnref3) ASX and AIM Release: 22 Aug 2012 - Outstanding Häggån
Uranium Resource expands to 800 million pounds

 4  (#_ftnref4) ASX and AIM Release: 5 Sept 2023 - Scoping Study Confirms
Scale and Optionality of Häggån

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