REG - Aura Energy Limited - Curzon to receive restructuring fee in shares

Aura EnergyAnnouncement

09/05/2024 07:30

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RNS Number : 7665N  Aura Energy Limited  09 May 2024

 
                                                                                                          9 May 2024

 

 Curzon elects to receive restructuring fee in shares

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or the "Company") is pleased
to provide an update to the recently announced 1  restructure of the Curzon
Uranium Ltd. ("Curzon") uranium offtake agreement which materially increased
the price receivable for planned uranium production and releasing significant
value for the Tiris Uranium Project.

KEY POINTS:

·    The restructured offtake agreement 2  improves the Project NPV(8) by
US$22M to US$388M and increases the IRR by 2% to 36% compared to Front End
Engineering Design ("FEED") study economics 3  delivered in March 2024

·    Curzon has elected to receive the US$3.5M (A$5.4M) restructuring fee
in Aura shares priced at A$0.18 per share, in lieu of a cash settlement

·    Curzon will also take a US$3.5M (A$5.4M) placement of Aura shares at
A$0.18 per share adding to Aura's cash reserves

·    Restructuring fee shares will be escrowed until first production

·    50% of the placement shares will be escrowed until the earlier of 30
June 2025 or Final Investment Decision ("FID")

·    The shares will be issued at the conclusion of final documentation
and subject to the Company's placement capacity being refreshed at the
upcoming shareholders' meeting on the 21 May 2024

·    Curzon will be issued 59,829,060 new shares in Aura and will hold
approximately 8% of the issued stock in Aura at that time

 

Andrew Grove Aura's MD and CEO commented:

"We welcome Curzon as a significant long term Aura shareholder and partner for
the development of the Tiris Uranium Project. Curzon is a leading global
uranium trader and their deep market insight and networks will be of
significant benefit to the development and successful operation of the future
Tiris Uranium Mine and will of benefit to all Aura shareholders."

 

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                                   Paul Ryan                                                  SP Angel Corporate Finance LLP

 Managing Director and CEO                      Morrow Sodali                                              Nominated Advisor and Broker

 Aura Energy Limited                            Investor & Media Relations                                 David Hignell

 agrove@auraee.com (mailto:Agrove@auraee.com)   p.ryan@morrowsodali.com (mailto:p.ryan@morrowsodali.com)   Kasia Brzozowska

 +61 414 011 383                                +61 409 296 511                                            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 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")
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.

 

 1  ASX Releases: "Update to Curzon Offtake Agreement" 16 April 2024

 2  ASX Releases: "Update to Curzon Offtake Agreement" 16 April 2024

 3  ASX Release: "FEED study confirms excellent economics for the Tiris
Uranium Project" 28 February 2024

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