REG - Aura Energy Limited - MOU signed with major nuclear utility

Aura EnergyAnnouncement

Tue 07:00

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RNS Number : 5504G  Aura Energy Limited  02 June 2026

 

 

                                                                                                                                            2 June 2026

MOU signed with major international nuclear utility:

FID targeted by year end 2026

 

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or the "Company") is pleased
to announce a Final Investment Decision ("FID") is now expected for the Tiris
project in 2026, underpinned by a robust processing flowsheet, positive
indicative economics, and a strategic memorandum of understanding ("MOU") that
strengthens the funding pathway.

HIGHLIGHTS
 Strategic                                     A strategic non-binding MOU with a major international nuclear power company

MOU signed with major international utility  covering potential investment, offtake and technical collaboration.

                                               MOU supports a pathway to a substantial, well-capitalised funding partner for
                                               Tiris, without derogating from other funding options.
 Clear path to FID                             BFS on track for September 2026; FID targeted by year-end 2026.
 Funding pathway strengthening                 Aura's funding pathway for Tiris spans multiple complementary sources,
                                               including:

                                               1)  a potential cornerstone strategic equity investment from a strategic
                                               investor such as the MOU counterparty;

                                               2)  senior project debt advancing with the U.S. International Development
                                               Finance Corporation ("DFC") together with new equity and quasi equity (e.g.
                                               royalty like instruments); and

                                               3)  a non-binding, fully funded proposal from a major US investment fund.
 Processing flowsheet settled                  A single, robust design built on commercially proven technologies and
                                               validated across the full range of Tiris ore types.
 Positive indicative economics                 Early-stage analysis indicates positive project economics. ATA+HVBF capital
                                               costs undercut pressure filtration, operating cost is broadly on par, and
                                               energy costs offer further upside - Mauritania ranks among as one of the
                                               world's highest solar resources.
 Plant Expansion under evaluation              Current Base Case at 2mlb pa with expansion to 3.5m lbs under review.
                                               Decision in September BFS
 First New Mine in Mauritania in 20 years      Tiris would be Mauritania' first uranium mine and its first new mine in 20
                                               years.

 

Aura Energy Executive Chairman, Phil Mitchell commented:

"This is a defining moment for the Tiris Uranium Project.

·      Settling the processing flowsheet locks in a validated technical
foundation and sets Aura on a clear path to become Mauritania's first new mine
in 20 years;

·    The Project continues to demonstrate positive indicative economics -
subject to final Bankable Feasibility Study ("BFS") assessment; and

·      An MOU with a major industry strategic power company, reiterates
strong investor interest and further underpins the funding pathway.

We look forward to providing shareholders with further updates as we progress
towards delivering the BFS in September 2026 and a Final Investment Decision
by year-end."

A settled, proven processing flowsheet

Aura has settled the processing flowsheet for the Tiris Uranium Project, the
most important technical milestone on the path to development. The Company,
working with dewatering specialists Acclarium and RCS, has selected a robust
flowsheet built entirely on commercially proven technologies and validated
across the full range of Tiris ore types. The flowsheet pairs pre-leach
centrifuge separation with post-leach ATA™ polymer dewatering and horizontal
vacuum belt filtration ("HVBF"), an efficient, cost-effective combination that
is ready for deployment.

The dewatering technology, ATA™ (Activator, Tether, Anchor), a polymer-based
system owned by ASX-listed Clean TeQ Water Limited (ASX: CNQ), is commercially
proven and accelerating into full-scale deployment. In May 2026, Clean TeQ
Water was awarded a design-and-construct contract for a full-scale ATA plant
processing 750,000 tonnes per annum tailings 1  (#_ftn1) , using the same
ATA™ and horizontal vacuum belt filtration combination selected for Tiris.

 Bottom line: With the processing flowsheet settled - a single robust design,
 validated across all identified Tiris ore type - the key technical uncertainty
 is removed and Tiris has a clear run to a FID.

Positive indicative economics 2  (#_ftn2)

With the base flowsheet settled, the project's economics can be assessed with
growing confidence. Early-stage analysis indicates that the economics are
robust, with the capital costs for ATA+HVBF lower than pressure filtration and
the operating costs are comparable.

The BFS will be strengthened by some key value-optimisation opportunities,
currently underway, including:

·           opportunities to reduce the cost of energy, recognising
that Mauritania ranks as one of the world's highest locations for solar
energy;

·           mining-method optimisation;

·           optimisation of uranium recovery from the leach feed,
to be completed in the next two months; and

·           investigation of a plant-capacity expansion toward 3.5
- 4 Mlb per annum U(3)O(8) to be quantified through the iterations and
confirmed in the final BFS, due to be released in September 2026.

A strategic MOU and a strengthened funding position

Aura's overall funding position for Tiris has strengthened markedly. The
Company is progressing multiple, well-advanced paths to fund the project
through to development:

·           Strategic equity partner: The MOU counterparty
(described below) is a potential cornerstone strategic equity investor in the
Tiris Project.

·           Project debt: Aura's advanced discussions with the U.S.
International Development Finance Corporation on senior project debt financing
of approximately US$150-170 million are progressing.

·           Fully funded proposal: Aura has also received a
non-binding, fully funded proposal from a major US investment fund.

Aura has today also signed a non-binding MOU with a major international
nuclear power company. The MOU encompasses funding, commercial and technical
opportunities and reflects the counterparty's assessment of the Tiris Uranium
Project. The MOU supports the pathway toward a strategic, well-capitalised
partner to help fund the development of Tiris.

Under the MOU, Aura and the counterparty will work closely together across the
development of Tiris on a structured pathway toward a significant strategic
funding partnership. At a high level, the MOU spans:

·           Potential strategic equity investment. A structured
process to evaluate a significant equity investment by the counterparty in
Tiris.

·           Funding support. The counterparty has indicated that,
in connection with an equity investment, it would support alternative
financing arrangements should they be required.

·           Indicative timeline. The parties have agreed an
indicative, non-binding timeline, targeting a commercial agreement on or
before 31 December 2026, with any required board and regulatory approvals
targeted by 30 June 2027.

·           Commercial collaboration. A framework to progress
discussions on potential uranium offtake and longer-term commercial
arrangements.

·           Technical collaboration & piloting. Engagement with
the counterparty's technical services arm on the BFS and the broader
engineering programme. The parties have also agreed to work collaboratively to
execute and operate a confirmatory due diligence pilot plant program, which
will be built in Mauritania and completed by Q4 2026.

·           Project governance. Aura retains full ownership and
operational control of the Tiris Project - its assets, data and intellectual
property - with any participation rights linked to a defined funding
contribution by the counterparty.

The MOU is non-binding, other than customary confidentiality provisions. It
formalises a relationship that has been building over several months and
creates a clear, structured basis on which substantive funding and offtake
discussions can advance in parallel with the September BFS.

The identity of the counterparty is commercially confidential and is not
disclosed in this announcement. The counterparty has requested confidentiality
as to its identity at this stage of negotiations, and the information is the
subject of a confidentiality obligation binding on the Company. The Company
relies on ASX Listing Rule 3.1A in withholding the counterparty's identity on
the basis that the MOU represents an incomplete proposal or negotiation. The
Company will disclose the counterparty's identity when it is no longer subject
to a confidentiality obligation or when disclosure is otherwise required under
the ASX Listing Rules.

 Why this matters: With the processing flowsheet settled, positive indicative
 economics, and a funding pathway spanning a strategic equity partner,
 advancing project debt with the U.S. DFC, and a fully funded proposal from a
 major US investment fund, Aura approaches its FID with key technical and
 funding milestones in place.

 

A clear path to the strategic financing decision

With these milestones secured, the path to the strategic financing decision
for Tiris is clearly defined:

 May/June 2026 (now)  Processing flowsheet settled and strategic MOU signed - two milestones
                      delivered.
 September 2026       Bankable Feasibility Study and Information Memorandum completed.
 Q4 2026              Strategic funding plan finalised; Final Investment Decision targeted by
                      year-end.

 

Authorisation for release

This announcement is authorised for release 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").

 

For further information, please contact:

 Philip Mitchell                 SP Angel Corporate Finance LLP  Tamesis Partners LLP

 Executive Chair                 Nominated Adviser               Broker

 Aura Energy Limited             David Hignell                   Charlie Bendon

 pmitchell@auraee.com            Adam Cowl & Devik Mehta         Richard Greenfield

 +44 7771 317302                 +44 203 470 0470                +44 203 882 2868

 Australian investors and media

 GRACosway

 Bill Frith

 Bill.Frith@omc.com

 +61 405 144 807

 

About Aura Energy (ASX: AEE, AIM: AURA)

Aura Energy Limited (ASX:AEE, AIM:AURA) is an Australian-based company focused
on the development of uranium and battery metals to support a cleaner energy
future. Aura is committed to creating value for host nations, local
communities, and shareholders through responsible and sustainable resource
development. Aura is advancing two key projects:

§ Tiris Uranium Project, Mauritania - A fully permitted, near-term
development asset with a potential long mine life. 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

§ Häggån Polymetallic Project, Sweden - A globally significant deposit
containing vanadium, sulphate of potash and uranium with potential long-term
value

 

Disclaimer - 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.

Future funding plans are not commitments and depend on market conditions,
approvals and counterparties; there is no assurance finance will be obtained
on acceptable terms.

Cautionary statement - Indicative economics and production targets

Any financial analysis or economic assessments presented in this Announcement
represent early-stage indicative analysis of the revised Tiris processing
flowsheet only. They do not constitute a BFS, Pre-Feasibility Study, or
Front-End Engineering Design study. The economic assessments are indicative,
not final and will be updated and confirmed through the BFS, due for
completion in September 2026. Any economic assessments derived from this
analysis may change, upward or downward, when the BFS is completed. There is
no certainty that the BFS will confirm these assessments or that the project
will be developed as described.

The most recently published FEED/DFS-level financial analysis for the Tiris
Uranium Project, reported in the ASX announcement dated 11 September 2024
(Updated Production Target Improves Economics at Tiris), reported a post-tax
IRR of 39% and post-tax NPV of US$499 million at a uranium price of US$80/lb
U₃O₈, on FEED/DFS-level assumptions. The indicative financial analysis or
project economics in this Announcement reflect the revised processing
flowsheet and are not directly comparable to those figures. The revised
flowsheet incorporating ATA polymer dewatering and horizontal vacuum belt
filtration differs materially from the configuration on which the September
2024 figures were based. The Company does not represent the September 2024
figures as current following the flowsheet change described in this
Announcement. Updated economics will be published as part of the BFS in
September 2026.

The material assumptions underpinning the indicative economic assessments in
this Announcement are: revised processing flowsheet incorporating ATA polymer
dewatering and horizontal vacuum belt filtration; production base case of 2
Mlb per annum U₃O₈; approximately 95% recovery of uranium in the leach
feed; capital and operating cost estimates to be confirmed through the BFS
(the prior FEED-level estimates of US$230M initial capital and AISC of
US$35.7/lb do not apply to the revised flowsheet and are not carried forward
in this Announcement); Mauritanian government royalties and offtake
commitments consistent with prior announcements. All assumptions for the
financial analysis or project economics will be disclosed in the BFS.

The production base case of 2 Mlb per annum U₃O₈ referred to in this
Announcement is consistent with the Production Target reported in the ASX
release Updated Production Target Improves Economics at Tiris, dated 11
September 2024, which utilises Measured Resources (34%), Indicated Resources
(40%) and Inferred Resources (26%). There is a low level of geological
confidence associated with Inferred Mineral Resources and there is no
certainty that further exploration will result in the determination of
Indicated Mineral Resources or that the production target will be realised.
The Company confirms that the use of Inferred Resources is not a determining
factor to the Tiris Project's economic viability.

 

Notes to project descriptions

The Company notes that the material assumptions underpinning the Tiris Uranium
Production Targets, Ore Reserves and the associated financial information
derived from the Tiris production target as outlined in the Aura Energy ASX
Release dated 29 March 2023 "Enhanced Definitive Feasibility Study", ASX
Release dated 28 February 2024 "FEED study confirms excellent economics for
the Tiris Uranium Project", ASX Release dated 16 April 2024 "Offtake
restructure delivers significant value", ASX Release dated 11 September 2024
"Updated Production Target Improves Economics at Tiris Uranium Project" and
ASX Release dated 13 December 2024 "Tiris Uranium Project Alternative
Production Targets" are subject to the matters disclosed in the ASX Release
dated 25 November 2025 "Chair Address - Annual General Meeting 2025", and
dated 30 January 2026 and 30 April 2026 "Quarterly Activities/Appendix 5B
Cash Flow Report". Process descriptions and cost, NPV, IRR and pay-back
estimates may be impacted by the ongoing review of basic engineering work
expected to be completed in September 2026. As described in the cautionary
statement of this Announcement, the September 2024 FEED/DFS-level financial
metrics (including IRR and NPV) are being updated and will be announced at
completion of the DFS following the flowsheet change described in this
Announcement.

The Tiris Uranium Project Mineral Resources were released ASX Release dated 12
June 2024 "Aura increases Tiris Mineral Resources by 55% to 91.3 Mlbs
U(3)O(8)" and Ore Reserves released ASX Release dated 16 December 2024
"Substantial increase in Tiris Uranium Project Ore Reserves". The Company
confirms that it is not aware of any new information or data that materially
affects the information included in the relevant market announcement and that
all material assumptions and technical parameters underpinning the estimates
in the relevant market announcements continue to apply and have not materially
changed, with the exception of process flow sheet matters currently being
addressed as outlined in the ASX Releases dated 25 November 2025 "Chair
Address - Annual General Meeting 2025" and dated 30 January 2026 and 30 April
2026 "Quarterly Activities/Appendix 5B Cash Flow Report".

 

 

 1  (#_ftnref1) Refer to Clean TeQ Water Limited ASX announcement dated 15 May
2026, "CNQ Awarded ATA Dewatering Contract at Rasp Mine".

 2  (#_ftnref2) Important Notice: The indicative economic assessments in this
announcement reflect the revised processing flowsheet selected by the Company
following the 2025 dewatering test work programme. The revised flowsheet
incorporating ATA polymer dewatering and horizontal vacuum belt filtration
differs materially from the configuration assessed in the Company's FEED study
(ASX announcement dated 28 February 2024) and the September 2024 Production
Target Update (ASX announcement dated 11 September 2024), which reported a
post-tax IRR of 39% and post-tax NPV of US$499 million at US$80/lb U₃O₈ on
FEED/DFS-level assumptions. The indicative economic assessments in this
announcement are early stage, have been prepared on a pre-BFS basis, and are
not final. They should not be directly compared to the September 2024
FEED/DFS-level figures, which were based on a different processing
configuration. The September 2024 figures are being updated and will be
announced at completion of the BFS following the flowsheet change described in
this announcement. There is no certainty that the BFS will confirm the
economic assessments in this announcement, or that the project will be
developed as described.

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