REG - Aura Energy Limited - Offtake and Spot Sales Agreements Secured

Aura EnergyAnnouncement

01/08/2025 07:00

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RNS Number : 5808T  Aura Energy Limited  01 August 2025

 

 

 

                                                                                                                 1 August 2025

 

Tiris Uranium Project - US Offtake and Spot Sales Agreements Secured

Aura Energy Limited (ASX: AEE, AIM: AURA) (Aura or the Company) is pleased to
announce the execution of two significant agreements for the future sale of
Uranium Oxide Concentrate (UOC) from its Tiris Uranium Project (Project or
Tiris) in Mauritania:

§ A long-term offtake agreement with a major US-based nuclear utility
(Offtake Agreement)

§ A master spot sales agreement with a leading global uranium trading group,
controlled by a major company (Spot Sales Agreement)

Key Highlights of the Agreements:

1.   Offtake Agreement with US Utility

§ First Utility Offtake: This is Aura's first long-term offtake agreement
with a nuclear power utility, marking a major milestone for the Project

§ Counterparty Strength: The utility is a Fortune 500 company with an
investment grade rating as defined by Standard & Poor's

§ Contract Terms: The contract is at market related pricing within a collar
price structure that is well above the forecast cost of production at Tiris

§ Production Volume and Term: The total contracted volume represents
approximately 10% of Tiris' projected uranium output over the agreement term
of a four-year period (2028-2031), contingent on delivery of UOC to a
designated conversion facility in the US or Europe

§ Conditions: The Offtake Agreement is subject to Aura securing project
financing and making a Final Investment Decision (FID) by 31 December 2025

§ Other terms and conditions: Other terms and conditions of the agreement are
in line with industry standards

§ Disclaimer: Aura confirms that this announcement contains all material
information relevant to assessing the impact of the Offtake Agreement on the
price or value of its securities and is not misleading by omission

Aura confirms that it does not consider the identity of the counterparty to be
information that a reasonable person would expect to have a material effect on
the price or value of Aura's securities

2.   Spot Sales Agreement

§ Flexible Sales Structure: The Spot Sales Agreement allows for discretionary
spot sales of UOC without long-term binding commitments

§ Delivery Locations: UOC can be delivered to agreed conversion facilities in
France, Canada, and the US

§ Strategic Value: This Spot Sales Agreement provides Aura with flexibility
to respond to market conditions and optimise revenue from spot market
opportunities

§ Counterparty: The counterparty is an integrated international uranium group
with an investment grade rating as defined by Standard & Poor's

§ Other terms and conditions: Other terms and conditions of the agreement are
in line with industry standards

§ Disclaimer: Aura confirms that this announcement contains all material
information relevant to assessing the impact of the Spot Sales Agreement on
the price or value of its securities and is not misleading by omission.

Aura confirms that it does not consider the identity of the counterparty to be
information that a reasonable person would expect to have a material effect on
the price or value of Aura's securities.

Strategic Significance and Value

The Offtake Agreement secures a range of revenues for the UOC covered by the
contracted volume and term, that locking in a minimum pricing mechanism that
Aura anticipates will also likely be a condition of future debt and project
funding arrangements for Tiris. The Spot Sales Agreement also allows Aura to
take advantage of short-term market pricing backed by a highly credible
counterparty. These agreements build upon the existing Curzon offtake
arrangement and reinforce the credibility of Tiris and Mauritania as an
attractive investment destination.

Notwithstanding the above, the impact of the Offtake Agreement and the Spot
Sales Agreement on the value of Aura's securities, while considered positive,
is currently difficult to measure and offers perhaps more qualitative than
quantitative reassurance at this time through validation of the potential
commercialisation of Tiris. While these agreements are critical in supporting
funding activities, underwriting a portion of the future Tiris revenues and
demonstrating the ability to sell UOC that will be produced from Tiris,
shareholders and investors alike should be mindful that each of these
agreements remains subject to procuring project financing and the making of a
FID, with first production from Tiris still estimated to be approximately 18
to 20 months from FID, assuming both financing is procured and a FID is made
in the affirmative. The proposed Offtake Agreement is also limited to up to
10% of production over the above mentioned four year period and needs to be
appreciated in this context.

Aura anticipates making further announcements in compliance with its
continuous disclosure obligations as and when further milestones towards
commercialisation of Tiris are achieved.

Aura Energy Managing Director, Andrew Grove, commented:

"These two agreements are a significant step forward for Aura as we progress
towards uranium production. Securing an offtake agreement with a US-based
utility underscores the credibility of the Tiris Uranium Project and supports
our strategic goal of becoming a reliable supplier for the global nuclear
energy sector. We remain focused on advancing financing discussions and
bringing the Tiris Uranium Project into production."

 

ENDS

 

This release has been 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                                      Andrew Grove

 Executive Chair                                      Managing Director and CEO

 Aura Energy Limited                                  Aura Energy Limited

 pmitchell@auraee.com (mailto:pmitchell@auraee.com)   agrove@auraee.com (mailto:agrove@auraee.com)

                                                      +61 414 011 383

 SP Angel Corporate Finance LLP                       Tamesis Partners LLP

 Nominated Adviser                                    Broker

 David Hignell                                        Charlie Bendon

 Adam Cowl                                            Richard Greenfield

 Devik Mehta                                          +44 203 882 2868

 +44 203 470 0470

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 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

Aura is committed to creating value for host nations, local communities, and
shareholders through responsible and sustainable resource development.

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