REG - Aura Energy Limited - Quarterly Report for period ending 30 September 24

Aura EnergyAnnouncement

24/10/2024 07:00

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RNS Number : 4451J  Aura Energy Limited  24 October 2024

 
                                                                                                            24 October 2024

 

 Activities Report for the September Quarter
 Aura Energy Limited (ASX:AEE, AIM:AURA) ('Aura' or the 'Company') is pleased
 to provide its quarterly activities report for the period ended 30 September
 2024 to accompany the Company's Appendix 5B.

 To view the Appendix 5B, please click
 here: http://www.rns-pdf.londonstockexchange.com/rns/4451J_1-2024-10-24.pdf
 (http://www.rns-pdf.londonstockexchange.com/rns/4451J_1-2024-10-24.pdf)

 Aura has continued to make significant progress on the development of the
 Company's flagship Tiris Uranium Project in Mauritania ('Tiris') as its
 progresses towards a Final Investment Decision ('FID') in early 2025 while
 advancing the licensing of the Häggån Polymetallic Project in Sweden
 ('Häggån').

HIGHLIGHTS:

Updated production target improves economics at Tiris Uranium Project 1 

 ·    The February 2024 Front End Engineering Design ('FEED') 2  study
 production target and economics was updated in September using the recently
 expanded 91.3Mlbs U(3)O(8) Mineral Resource 3  at the Tiris Uranium Project in
 Mauritania to produce a Production Target Update

 ·    Production Target Update(1) increased the total project U(3)O(8) life
 of mine production by 44% to 43.5Mlbs U(3)O(8) and extended the mine life from
 17 years to 25 years

 ·    Project economics have also significantly improved:

 ·      NPV(8%) of US$499 million (A$734 million), an increase of 29%

 ·      IRR of 39% post tax and payback only 2.25 years

 ·        Life of Mine post tax cash flows of US$1,509 million, an
 increase of 42%

                              Units            Update      FEED     %

                                                 Sept 24    Feb 24   Change

 Uranium price                 US$/lb U(3)O(8)  $80         $80      0%
 Valuations and returns
 Post-tax NPV(8)               US$ million      499         388      29%
 Post-tax IRR                  %                39%         36%      8%
 Payback period                Years            2.25        2.5      -10%
 Cashflow summary
 Initial Life of Mine (LOM)    Years            25          17       43%
 LOM production                Mlbspa U(3)O(8)  43.5        30.1     44%
 Annual production             Mlbspa U(3)O(8)  1.8         1.9      -5%
 Gross revenue (LOM)           US$ million      3,467       2,257    54%
 Free Cashflow pre-tax (LOM)   US$ million      1,922       1,327    45%
 Free Cashflow post tax (LOM)  US$ million      1,509       1,061    42%
 Unit operating costs
 All in Cost                   US$/lb U(3)O(8)  41.0        41.8     -2%
 All-in Sustaining Costs       US$/lb U(3)O(8)  35.7        34.5     3%
 C1 Cash Cost                  US$/lb U(3)O(8)  31.4        30.1     4%
 Capital cost
 Development capital           US$ million      230         230      0%

Table 1 - Summary of updated production target outputs

 Tiris Uranium Project fully permitted for development and operations

 Aura received the last outstanding material permit from the Mauritanian
 Government to allow the construction and operation of the Tiris Uranium
 Project. The authorisation to develop, mine and produce Uranium Oxide
 Concentrate ('UOC') was issued by the National Authority for Radiation
 Protection, Safety and Nuclear Security (L'Autorité Nationale de
 Radioprotection de Sûreté et de Sécurité Nucléaire ('ARSN')) on the 12
 July 2024.

 Restructure of the Curzon Uranium Limited ('Curzon') offtake agreement
 completed 4 

 The previously reported Curzon offtake restructure 5  was completed on the 12
 August 2024 and included a A$5.4 million restructuring fee paid in Aura shares
 priced at A$0.18 per share plus a A$5.4 million private placement in Aura at
 the same price. In aggregate, Curzon was issued 59,829,060 new shares in Aura
 and 5,982,906 options (priced at A$0.20 per option and expiring 1 September
 2025). Curzon now hold approximately 7.2% of the undiluted issued shares in
 the Aura.

 The restructured offtake materially increased the price receivable for planned
 uranium production and released significant value for Tiris:

 ·    Average fixed price contract price increases 70% to US$74.75/lb
 U(3)O(8) from US$44.09/lb U(3)O(8) subject to FID by 31 March 2025

 ·    Total contracted volumes (fixed and variable priced contracts) reduce
 from 2.6Mlbs to 2.1Mlbs over the same 7-year term

 ·    Additional revenue of US$41 million delivered to the Tiris Uranium
 Project cash flows at a uranium price of US$80/lb U(3)O(8)

 Activities and milestones

 Numerous activities have commenced or have been completed during the quarter
 supporting Aura's objective of finalising a mine development decision by Q1
 2025, including:

 ·    Funding activities continued including the appointment of RPM Global
 as Independent Technical Experts ('ITE') to undertake due diligence on behalf
 of the funders, with a site visit scheduled for October

 ·    Water drilling commenced at the Taoudeni Basin, ~100km south of the
 Project with very significant water flows, up to 55m(3) per hour and over a
 60% success rate in the drilling

 ·    Government engagement including meeting the new Minister of Mines and
 Industry, His Excellency Minister Thiam Tidjani

 ·    Appointment of experienced West African project director Jan Booyse
 to lead the project development at Tiris

 ·    Engineering, Procurement and Construction Management ('EPCM')
 contractor selection process commenced

 ·    Environmental, Social and Governance ('ESG') framework developed and
 resourced

 ·    Continued engagement with multiple nuclear utilities with respect to
 securing offtake contracts for the future Tiris uranium production, having
 attended the World Nuclear Association ('WNA') conference in London in
 September

 Häggån Project exploitation license submitted in Sweden

 Aura Energy submitted the processing concession ('Exploitation Permit
 Application') for Häggån K no 1 with the Swedish Mining Inspectorate 6 . The
 Exploitation Permit Application incorporated a preliminary assessment of the
 Project including economics and both environmental and community impact. The
 Swedish Mining Inspectorate will now consider the application.

 The exploitation permit will secure the tenure over the Häggån Project and
 be valid for 25 years, pending approval from the Swedish government. Aura will
 then undertake further environmental and social impact studies, with the goal
 of developing a profitable mine that operates sustainably, responsibly and in
 full compliance with Swedish regulations.

 In addition, applications were submitted for a new exploration application,
 Häggån no 2, covering the areas of the original Häggån no 1 concession and
 an exception to the prohibition year. During the period this application was
 rejected by the Swedish Mining Inspectorate as the Häggån no 1 concession
 remains valid and has not yet expired until the determination of the
 Exploitation Permit Application, at which point new exploration application
 and exemption will be resubmitted.

 The Company believes these applications will be considered favourably due to
 the considerable amount of work undertaken over the Project to date. However,
 there is no guarantee either application with be granted.

 Balance Sheet

 As of 30 September 2024, the Company had cash of A$15.8 million.

 Aura Managing Director and CEO, Andrew Grove commented:

 "Our team at Aura continued to make significant progress towards the
 development of our exciting Tiris Uranium Project. The material update to the
 Project economics on the back of the increased Mineral Resource is just the
 start of defining what will be a globally significant Project and a new
 uranium producing region.

 With the work being undertaken to demonstrate the scale opportunities within
 the current Mineral Resource, and the very significant exploration potential,
 we hope to demonstrate material opportunity that lies within Tiris and
 northern Mauritania more broadly.

 We continue to advance the project on multiple fronts to meet our commitment
 to progress Tiris towards a Final Investment Decision in early 2025."

Table 1 - Summary of updated production target outputs

Tiris Uranium Project fully permitted for development and operations

Aura received the last outstanding material permit from the Mauritanian
Government to allow the construction and operation of the Tiris Uranium
Project. The authorisation to develop, mine and produce Uranium Oxide
Concentrate ('UOC') was issued by the National Authority for Radiation
Protection, Safety and Nuclear Security (L'Autorité Nationale de
Radioprotection de Sûreté et de Sécurité Nucléaire ('ARSN')) on the 12
July 2024.

Restructure of the Curzon Uranium Limited ('Curzon') offtake agreement
completed 4 

The previously reported Curzon offtake restructure 5  was completed on the 12
August 2024 and included a A$5.4 million restructuring fee paid in Aura shares
priced at A$0.18 per share plus a A$5.4 million private placement in Aura at
the same price. In aggregate, Curzon was issued 59,829,060 new shares in Aura
and 5,982,906 options (priced at A$0.20 per option and expiring 1 September
2025). Curzon now hold approximately 7.2% of the undiluted issued shares in
the Aura.

The restructured offtake materially increased the price receivable for planned
uranium production and released significant value for Tiris:

·    Average fixed price contract price increases 70% to US$74.75/lb
U(3)O(8) from US$44.09/lb U(3)O(8) subject to FID by 31 March 2025

·    Total contracted volumes (fixed and variable priced contracts) reduce
from 2.6Mlbs to 2.1Mlbs over the same 7-year term

·    Additional revenue of US$41 million delivered to the Tiris Uranium
Project cash flows at a uranium price of US$80/lb U(3)O(8)

Activities and milestones

Numerous activities have commenced or have been completed during the quarter
supporting Aura's objective of finalising a mine development decision by Q1
2025, including:

·    Funding activities continued including the appointment of RPM Global
as Independent Technical Experts ('ITE') to undertake due diligence on behalf
of the funders, with a site visit scheduled for October

·    Water drilling commenced at the Taoudeni Basin, ~100km south of the
Project with very significant water flows, up to 55m(3) per hour and over a
60% success rate in the drilling

·    Government engagement including meeting the new Minister of Mines and
Industry, His Excellency Minister Thiam Tidjani

·    Appointment of experienced West African project director Jan Booyse
to lead the project development at Tiris

·    Engineering, Procurement and Construction Management ('EPCM')
contractor selection process commenced

·    Environmental, Social and Governance ('ESG') framework developed and
resourced

·    Continued engagement with multiple nuclear utilities with respect to
securing offtake contracts for the future Tiris uranium production, having
attended the World Nuclear Association ('WNA') conference in London in
September

 

Häggån Project exploitation license submitted in Sweden

Aura Energy submitted the processing concession ('Exploitation Permit
Application') for Häggån K no 1 with the Swedish Mining Inspectorate 6 . The
Exploitation Permit Application incorporated a preliminary assessment of the
Project including economics and both environmental and community impact. The
Swedish Mining Inspectorate will now consider the application.

The exploitation permit will secure the tenure over the Häggån Project and
be valid for 25 years, pending approval from the Swedish government. Aura will
then undertake further environmental and social impact studies, with the goal
of developing a profitable mine that operates sustainably, responsibly and in
full compliance with Swedish regulations.

In addition, applications were submitted for a new exploration application,
Häggån no 2, covering the areas of the original Häggån no 1 concession and
an exception to the prohibition year. During the period this application was
rejected by the Swedish Mining Inspectorate as the Häggån no 1 concession
remains valid and has not yet expired until the determination of the
Exploitation Permit Application, at which point new exploration application
and exemption will be resubmitted.

The Company believes these applications will be considered favourably due to
the considerable amount of work undertaken over the Project to date. However,
there is no guarantee either application with be granted.

Balance Sheet

As of 30 September 2024, the Company had cash of A$15.8 million.

Aura Managing Director and CEO, Andrew Grove commented:

"Our team at Aura continued to make significant progress towards the
development of our exciting Tiris Uranium Project. The material update to the
Project economics on the back of the increased Mineral Resource is just the
start of defining what will be a globally significant Project and a new
uranium producing region.

With the work being undertaken to demonstrate the scale opportunities within
the current Mineral Resource, and the very significant exploration potential,
we hope to demonstrate material opportunity that lies within Tiris and
northern Mauritania more broadly.

We continue to advance the project on multiple fronts to meet our commitment
to progress Tiris towards a Final Investment Decision in early 2025."

 

 

Tiris Uranium Project, Mauritania

The Tiris Uranium Project 7  located in Mauritania is a potential near-term,
low-cost, long-life uranium mine producing 2Mlbs pa U(3)O(8) over the
currently defined 25-year mine life with production expected to commence in
2026/27.

During the September quarter, important activities continued to progress Tiris
towards a Final Investment Decision ('FID') in early 2025 and, ultimately, the
development of Mauritania's first uranium mine, including:

·    Updated the Project economics and mine plan based of the expanded
91.3Mlbs U(3)O(8) Mineral Resource 8  delivered last quarter

·    Achieved final permitting of the Tiris Project

·    Completed the restructured Curzon offtake contract including a A$5.4
million placement by Curzon into Aura

·    Funding activities continued

·    Water drilling commenced with great success

·    Numerous other pre-development activities progressed

Key highlights and outcomes of the Tiris Production Target 9  update:

The update to the production target for the FEED study(5) has allowed revenue
to be moved forward in the mining schedule and also increased the overall life
of mine.

·    Robust base case project financial economics demonstrated by post-tax
NPV(8) of US$499 million (A$734 million) with IRR of 39%, and a 2.25-year
payback at realised uranium price of US$80/lb U(3)O(8)

·    At uranium prices of US$100/lb U(3)O(8) the economics increase to
post-tax NPV(8) of US$779 million (A$1,145 million) with IRR of 55%

·    Initial mine life increased from 17 years to 25 years, producing an
average 1.8Mlbspa U(3)O(8) from the 2.0Mlbspa U(3)O(8) capacity process plant

·    Life of Mine ('LOM') uranium production increased from 30.1Mlbs
U(3)O(8)to 43.5Mlbs U(3)O(8)

·    93% Measured and Indicated Mineral Resources in mining schedule
during the first four years, LOM Inferred material totals 33% mostly beyond
ten years in the mining schedule

·    The open pit mining is a simple, low-risk, shallow, free digging
operation without the need for crushing and grinding

·    Beneficiation delivers a high-grade leach feed averaging 2,217ppm
U(3)O(8) increasing from 1,997ppm U(3)O(8) (over first 5 years) and overall
remains approximately the same at 1,752ppm U(3)O(8) from 1,743ppm U(3)O(8)
(LOM) at a very low average cost of US$9.16/lb U(3)O(8)

·    AISC increased to US$35.7/lb U(3)O(8), an escalation of 3% on the
2024 FEED estimate(5), largely due to a minor increase in waste to ore strip
ratio from 0.7 to 0.8 waste to ore tonnes

·    CAPEX of US$230 million was not re-evaluated in this update and
remained unchanged from the February FEED study(7)

·    Uranium production planned within 18 months of Final Investment
Decision

·    Modular design provides opportunities for further capital efficient
expansion and scalability

·    The construction and operation of the Tiris Uranium Project will
deliver significant and ongoing benefits to the people of Mauritania

Aura sees additional potential for growth of uranium resources in Mauritania,
both within the Tiris East region (Figure 1) and more widely in the Tiris
Zemmour province. The Company has applied for 29 additional exploration
tenements, covering 13,000 km(2) that show very strong uranium potential 10 ,
(Figure 2) across the region and will continue to work to build northern
Mauritania as a significant global uranium province.

Figure 1 - Radiometrics, tenement boundaries, prospect locations, Mineral
Resource boundaries reported in 2024 and 2023, along with drilling completed
during the current and prior programs

Figure 2 - Aura tenements including granted and applications also showing
geology and radiometric targets

Tiris Production Target update Financial Analysis

Financial analysis of the Tiris Project is inclusive of Mauritanian government
royalties and commitments relating to the offtake agreement with Curzon 11 .

Results are on an after-tax basis in $USD, unless otherwise stated. Financial
modelling is inclusive of all capital items, including mining mobilisation,
process plant, project infrastructure and LOM sustaining capital.

Table 2 shows the variance in NPV(8), IRR, payback period and net cashflows
between this Production Target Update and the FEED Study(7). Applying a base
case uranium price of US$80/lb U(3)O(8), the post-tax NPV(8) of the Tiris
Project is US$499 million, the post-tax IRR of 39%, and the project payback of
2.25 years from commencement of production. At this price the project
generates average annual net cashflows (EBITDA) of US$89 million per annum for
the first five years and US$63 million per annum for the LOM.

Table 2 - Summary of outputs recommended for presentation of Production Target
Update and FEED update results

                               Units            FEED Update Sept 24  FEED     % Change

                                                                     Feb 24

 Uranium Price                 US$/lb U(3)O(8)  $80                  $80      0%
 Valuations and Returns
 Post-tax NPV(8)               US$ million      499                  388      29%
 Post-tax IRR                  %                39%                  36%      8%
 Payback period                Years            2.25                 2.5      -10%
 Cashflow Summary
 Initial Life of Mine          Years            25                   17       43%
 LOM Production                Mlbspa U(3)O(8)  43.5                 30.1     44%
 Annual Production             Mlbspa U(3)O(8)  1.8                  1.9      -5%
 Gross Revenue (LOM)           US$ million      3,467                2,257    54%
 Free Cashflow pre-tax (LOM)   US$ million      1,922                1,327    45%
 Free Cashflow post tax (LOM)  US$ million      1,509                1,061    42%
 Unit Operating Costs
 All in Cost                   US$/lb U(3)O(8)  41.0                 41.8     -2%
 All-in Sustaining Costs       US$/lb U(3)O(8)  35.7                 34.5     3%
 C1 Cash Cost                  US$/lb U(3)O(8)  31.4                 30.1     4%
 Capital Cost
 Development Capital           US$ million      230                  230      0%

Sensitivity Analysis

The sensitivity of the project to market and project factors was examined.
Table 3 provides a comparison of project returns (NPV and IRR) at various
throughput profiles and U(3)O(8) prices. This demonstrated robust returns for
a range of pricing scenarios for both the Base and Growth scenarios. This
analysis determined that the greatest capital efficiency could be achieved for
the base case production profile, targeting 2Mlbs U(3)O(8) pa production.

Table 3 - Economic comparison at varying U(3)O(8) prices for Base Case 2Mlbs
U(3)O(8) pa production

 Spot U(3)O(8) Price  US$/lb       65   70 12   80   86 13   90   100  110
 NPV(8)               US$ million  285  355     499  571     639  779  919
 IRR                  %            27%  29%     39%  41%     47%  55%  63%

The sensitivity of the project to key variables was examined in Figure 3. This
showed that the Project was most sensitive to revenue drivers, including mined
grade and U(3)O(8) spot price. The Project was least sensitive to operating
cost inputs.

Figure 3 - Tiris Project sensitivity analysis (NPV(8) US$ million)

 

Tiris Uranium Project fully permitted for development and operations

Aura received the last outstanding material permit from the Mauritanian
Government to allow the construction and operation of the Tiris Uranium
Project. The authorisation to develop, mine and produce Uranium Oxide
Concentrate ('UOC') was issued by the National Authority for Radiation
Protection, Safety and Nuclear Security (L'Autorité Nationale de
Radioprotection de Sûreté et de Sécurité Nucléaire ('ARSN')) on the 12
July 2024.

Approvals for the export of uranium will be granted as part of a routine
export monitoring program and in accordance with international safeguards for
monitoring the movement of radioactive materials. There are no limits on the
volumes of future uranium production, which will allow significant flexibility
for the operation including the potential for future expansion of production
rate beyond 2Mlbs pa U(3)O(8).

The Company has contracted Oranio Logistics, a major international company
specialising in the transportation of radioactive materials, for the future
seaborne transportation of UOC produced from Tiris to international
converters.

Restructure of the Curzon offtake agreement completed 14 

The previously reported Curzon offtake restructure 15  was completed on the 12
August 2024 with the following key highlights:

·    Average fixed price contract price increases 70% to US$74.75/lb
U(3)O(8) from US$44.09/lb U(3)O(8) subject to Final Investment Decision
('FID') by 31 March 2025

·    Total contracted volumes (fixed and variable priced contracts) reduce
from 2.6Mlbs to 2.1Mlbs over same seven-year term

·    Additional revenue of US$41 million delivered to the Tiris Project
cash flows at a uranium price of US$80/lb U(3)O(8)

·    Consistent with its previous election, Curzon will receive the US$3.5
million (A$5.4 million) restructuring fee in Aura shares priced at A$0.18 per
share ('Restructuring Fee Shares')

·    Restructuring Fee Shares will be escrowed until first production from
the Project

·    Aura will make a private placement to Curzon of 29,914,530 Aura
shares, valued at US$3.5 million (A$5.4 million) in aggregate ('Placement
Shares')

·    50% of the Placement Shares will be escrowed until the earlier of 30
June 2025 or FID is made on the Project

·    In addition, Aura issued 5,982,906 unlisted options ('Options')
priced at A$0.20 per option and expiring 1 September 2025, to Curzon

·    In aggregate, Curzon were issued 59,829,060 new shares in Aura and
5,982,906 options.  and Curzon holds approximately 7.1% of the undiluted
issued shares in the Aura

·    With the additional funds, Aura is well funded to progress the
Project through to FID by Q1 CY2025

Tiris funding continuing

As previously reported on 3 June 2024, Aura appointed Orimco Pty Ltd
('Orimco') to arrange debt funding for Tiris. Aura 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.

This process has continued during the quarter. RPMGlobal were appointed as
Independent Technical Experts ('ITE') to undertake the technical and
Environmental, Social and Governance ('ESG') due diligence on behalf of the
funders with site visits scheduled for October. Legal due diligence is also
scheduled to commence in October.

A number of parties have expressed interest in both funding and strategic
investment, and the advisors continue to progress conversations with these
parties.

 

 

Water drilling update

Water targeting and drilling activities commenced on site at the Taoudeni
Basin, ~100km south of the Project. In Figure 4, the images show significant
water flows, up to 55m(3) per hour in air lift testing, and over a 60% success
rate in the drilling encountering water. Project water demand has been
estimated to be up to approximately 160m(3) per hour.

During September, 19 holes were completed for 1,989 metres in the Taoudeni
Basin.

Pump testing of the identified aquifers commenced in October. Drilling also
commenced at the C22 water resource ~30km for the Project. This program will
be completed during the December quarter and the Company is confident that the
program will demonstrate that sufficient water resources will be available for
the Project.

Figure 4 - Taoudeni Basin water drilling images

Environment Social Governance framework

During the quarter under the guidance of Bruce Harvey of Resolution88 Social
License Solutions and specialist consultants, the Company's ESG framework was
developed. Chantelle De La Haye, a highly experienced health, safety, security
and environment ('HSSE') professional, has been appointed to implement the ESG
framework.

Aura's ESG framework is as follows:

Purpose Statement:

Aura Energy develops metals and minerals for a cleaner energy world,
respecting, listening to and creating value for host nations, local
communities and shareholders.

ESG-related Values Statements

Business integrity - at all times we conduct ourselves with integrity

Health, safety and wellbeing - we are committed to ensuring our employees,
contractors and affected community members can work and live in a safe and
healthy way

Respect, diversity and inclusion - we strive to ensure that every member of
our workforce and the communities we affect feel respected and valued

Cooperation, responsibility and technical excellence - we create value for our
business, our investors and our workforce by fostering technical excellence,
cultivating a collaborative approach to problem solving, and encouraging
responsibility and innovation

Environmental responsibility - we are committed to responsible environmental
management

Social responsibility - we are committed to being socially responsible and
seek to obtain and sustain broad-based support for our business activities.
This includes respecting the human rights of everybody affected by our
business and value chain activities

Regional employment and enterprise - we seek to contribute to local and
regional development wherever possible

Climate and energy transition - we are committed to climate change mitigation
and energy source transition

Other Tiris Activities

Project update was delivered on 4 July 2024 outlining five key steps that have
commenced supporting Aura's objective of finalising a mine development
decision by Q1 CY2025, including:

·    Appointment of experienced West African project director Jan Booyse
and his company, Project EQ, to lead the project development at Tiris

·    Appointment of Kenmore Mine Consulting to complete a mine plan
optimisation review

·    Appointment of Lycopodium to oversee an optimisation and project
enhancement study

·    Knight Piésold Consulting appointed to oversee water resource
drilling in the abundant and proximate Taoudeni Basin

Further to that announcement during the quarter various activities were
undertaken aimed at progressing towards a Final Investment Decision at Tiris
and included:

·    Continued strong engagement with Mauritanian government with a focus
on delivering a collaborative development schedule and an Aura delegation
(including Chair and Managing Director and CEO) meeting the new Minister of
Mines and Industry, His Excellency Minister Thiam Tidjani

·    Recruitment of Mauritanian team including search for highly calibre
country manager

·    Engineering, Procurement and Construction Management ('EPCM')
contractor selection process commenced

·    Lycopodium optimisation and project enhancement study resulted in no
material variance in the FEED capital estimate

·    Continued engagement with multiple nuclear utilities with respect to
securing offtake contracts for the future Tiris uranium production, having
attended the World Nuclear Association ('WNA') conference in London in
September

Häggån Project Update

The Häggån Polymetallic Project, located in the municipality of Berg in the
county of Jämtland, hosts a globally significant two billion tonne
polymetallic Mineral Resource 16  which includes 800Mlbs of U(3)O(8) 17 (.)
The primary metals and minerals are vanadium, sulphate of potash ('SOP') and
uranium, with nickel, molybdenum and zinc also present.

Approximately 14% of the known value of the asset is uranium. Including
uranium into the previously published scoping study 18  increased the Project
NPV by 37% at a uranium price of US$65/lb U(3)O(8) from the previously stated
range of between US$456 million to US$1,307 million.

The Swedish Government announced on 23 February 2024 the launch of an inquiry
into overturning the existing ban on mining uranium, which has been in place
since 2018. The inquiry investigated the regulatory changes needed to make
uranium extraction legal and analyse whether mining of uranium should be
allowed. The inquiry was presented to the government but has not yet been made
public. Once the results of the inquiry are published, the Government can
choose to go forward with a legislative proposal to Parliament.

Aura Energy submitted the processing concession ('Exploitation Permit
Application') for Häggån K no 1 with the Swedish Mining Inspectorate 19 .
The Exploitation Permit Application incorporated a preliminary assessment of
the Project including economics and both environmental and community impact.
The Swedish Mining Inspectorate will now consider the application.

The exploitation permit will secure the tenure over the Häggån Project and
be valid for 25 years, pending approval from the Swedish government.  Aura
will then undertake further environmental and social impact studies, with the
goal of developing a profitable mine that operates sustainably, responsibly
and in full compliance with Swedish regulations.

In addition, applications were submitted for a new exploration application,
Häggån no 2, covering the areas of the original Häggån no 1 concession and
an exception to the prohibition year. During the period this application was
rejected by the Swedish Mining Inspectorate as the Häggån no 1 concession
remains valid and has not yet expired until the determination of the
Exploitation Permit Application, at which point new exploration application
and exemption will be resubmitted.

The Company believes these applications will be considered favourably due to
the considerable amount of work undertaken over the Project to date. However,
there is no guarantee either application with be granted.

Corporate Activities:

Option Funding Agreements

On 25 January 2024, the Company announced that it had entered into an option
funding agreement with investors who have agreed to prepay the Company
approximately A$4.3 million, equal to the exercise monies for all remaining
options expiring 30 June 2024.

As of 30 June 2024, 1,543,958 options remained unexercised, with an options
funding loan balance of approximately A$80,000. On 9 July 2024, the Company
issued the shortfall shares to the underwriter at the option exercise price of
A$0.052 each. The options funding loans were fully repaid with proceeds
received from options holders and the issue of shortfall shares to the
underwriters.

Cash and Cash Forecast

The Company's cash position as of 30 September 2024 was A$15.8 million. The
Company's major cashflow movements for the quarter included:

·    Investments in the Company's exploration and evaluation assets of
A$2.9 million

·    Proceeds from Curzon placement A$5.4 million

·    Repayment of options funding loans of A$1.2 million

·    Administration and corporate costs of A$1.1 million

·    Staff costs of A$0.4 million

The forecasted net operating cashflow and investment in the Company's
exploration and evaluation assets for the coming quarter is A$4.4 million.
With a closing cash balance of A$15.8 million, the company has enough cash for
3.6 quarters.

Remuneration Consultant

The Remuneration and Nomination Committee engaged Arthur J. Gallagher &
Co. ('Gallagher'), an experienced remuneration consultant, to provide guidance
on a competitive, market-related remuneration program for senior executives
and non-executive directors. The results of this work was included in the
Company's annual report published on the 27 September 2024.

Gallagher is one of the leading insurance brokerage, risk management, and
human capital consultant companies in the world. Gallagher employs over 52,000
people providing services in more than 130 countries.

December Quarter Planned Activities

At Tiris, the next steps in progressing towards the construction and
development of the Project that will be undertaken or commenced during the
December quarter include:

·    Project development funding activities

·    Optimisation of mine plan and review potential Project scale on the
based upon the enhanced 91.3Mlbs U(3)O(8) Mineral Resource 20 

·    Offtake contract negotiations

·    Complete water drilling and revisor testing to confirm and develop
water infrastructure sufficient to support future operations

·    Appoint EPMC contractors to develop the Tiris Project

·    Commence basic engineering and early works development planning

·    Geometallurgy, engineering and design work to support development
activities

·    Baseline environmental and radiation monitoring

·    Implementation of ESG framework

At Häggån the planned activities include:

·    Work to support the exploitation permit application

September 2024 Quarter ASX Announcements

This Quarterly Activities Report contains information extracted from ASX
market announcements reported in accordance with the 2012 edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" ("2012 JORC Code"). Further details (including 2012 JORC Code
reporting tables where applicable) of 2012 JORC Code related disclosures
referred to in this Quarterly Activities Report can be found in the relevant
announcements lodged on the ASX and in the section titled "ASX JORC Related
Disclosures" set out on page 15 of this report. Following is a list of all
market sensitive announcements lodged by the Company during the September
Quarter:

·    Multiple project development activities underway at
Tiris                        4 July 2024

·    Tiris Project fully permitted for development and
operations                   15 July 2024

·    Curzon Restructure and
Placement
15 August 2024

·    Haggan Project Exploitation Permit application
submitted                      5 September 2024

·    Updated Production Target Improves Economics at
Tiris                       11 September 2024

·    Aura Annual Report
 
27 September 2024

These announcements are available for viewing on the Company's website
auraenergy.com.au. Aura confirms that it is not aware of any new information
or data that materially affects the information included in any of these
original ASX announcements.

Tenement Summary

The Company holds the following interest in mining tenements, farm-in and
farm-out agreements at the end of the quarter:

Table 4 - Tenement summary

 Tenement No.     Name               Grant Date  Expiry                                                    Km(2)  Holder                          Equity
 Mauritania
 2491C4           Ain Sder           8/02/2019   7/02/2049                                                 207    Tiris Ressources SA             85%
 2492C4           Oued El Foule      8/02/2019   7/02/2049                                                 190    Tiris Ressources SA             85%
 2490C4           Oum Ferkik         19/05/2017  Pending approval of application for Exploitation License  60     Aura Energy Limited             100%

 (formerly 561)
 2365B4           Oued El Foule Sud  04/12/2023  03/08/2026                                                166    Aura Energy Limited             100%
 2457B2           Hadeibet Belaa     08/12/2023  07/08/2026                                                41     Tiris International Mining Co.  100%
 2458B2           Touerig Taet       08/12/2023  07/8/2026                                                 134    Tiris International Mining Co.  100%
 Sweden
 2007-243         Häggån nr 1        28/08/2007  Pending determination of exploitation permit application  18     Vanadis Battery Metals AB       100%
 2016:9           Möckelåsen nr 1    21/01/2016  21/01/202                                                 18     Vanadis Battery Metals AB       100%
 2016:7           Skallböle nr 1     20/01/2016  20/01/2028                                                8      Vanadis Battery Metals AB       100%

Farm-in agreement with Nomads Mining Company sarl, Mauritania, Aura, through
subsidiary Archean Greenstone Gold has earned a 70% interest in Nomads
100%-owned exploration permit in Mauritania (refer to ASX announcement 11 June
2019).

 

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                      Sodali & Co                                             Nominated Advisor and Broker

 Aura Energy Limited                            Investor & Media Relations                              David Hignell

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

 +61 414 011 383                                +61 409 296 511                                         Grant Baker

                                                                                                        +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. 2024 FEED
Study 21  and Updated Production Target 22  demonstrated Tiris to be a
near-term low-cost 2Mlbs U(3)O(8) pa future uranium mine with a 25-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") 23  and uranium 24  resource. Utilising only 3% of the resource, a
2023 Scoping Study 25  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; "Tiris Uranium Project Enhanced Definitive Feasibility Study",
29 March 2023 and "Updated Production Target improves economics at Tiris
Uranium Project" 11 September 2024.

ASX and JORC Related Disclosures

Mineral Resources

The information on Mineral Resources for the Tiris Uranium Project in this
report is extracted from the ASX release on 12 June 2024 titled "Aura
increases Tiris Mineral Resources by 55% to 91.3Mlbs".

The information on Mineral Resources for the Tiris Uranium Project in this
report is extracted from the ASX release on 10 October 2019 titled "Häggån
Battery Metal Project Resource Upgrade Estimate Successfully Completed". These
reports can be viewed at
https://auraenergy.com.au/investor-centre/asx-announcements
(https://auraenergy.com.au/investor-centre/asx-announcements) .

 

The company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources or Ore
Reserves, that all material assumptions and technical parameters underpinning
the estimates in the relevant market announcement continue to apply and have
not materially changed. 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.'

Production Targets

The information on Production Targets for the Tiris Uranium Project in this
report is extracted from the ASX release on 11 Sept 2024 titled "Updated
Production Target Improves Economics at Tiris". This report can be viewed at
https://auraenergy.com.au/investor-centre/asx-announcements
(https://auraenergy.com.au/investor-centre/asx-announcements) .

The company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcement and that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement continue to
apply and have not materially changed.

Scoping Study

The information on Häggån Scoping Study in this report is extracted from the
ASX release on 5 September 2023 titled "Scoping Study Confirms Scale and
Optionality of Häggån". This report can be viewed at
https://auraenergy.com.au/investor-centre/asx-announcements
(https://auraenergy.com.au/investor-centre/asx-announcements) .

The company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcement and that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement continue to
apply and have not materially changed.

 

 1  ASX and AIM Release: 11 Sept 2024 - ASX and AIM Release: "Updated
Production Target Improves Economics at Tiris

 2  ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent economics
for the Tiris Uranium Project

 3  ASX and AIM Release: 12 June 2024 - Aura increases Tiris Mineral Resources
by 55% to 91.3Mlbs

 4  ASX and AIM Release: 15 Aug 2024 - Curzon Restructure and Placement

 5  ASX and AIM Release: 16 April 2024 - Offtake restructure delivers
significant value Curzon Restructure and Placement

 6  ASX and AIM Release: 5 Sept 2024 - Haggan Project Exploitation Permit
application submitted

 7  ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent economics
for the Tiris Uranium Project

 8  ASX and AIM Release: 12 June 2024 - Aura increases Tiris Mineral Resources
by 55% to 91.3 Mlbs

 9  ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves
Economics at Tiris

 10  ASX and AIM Release: 29 November 2023 - New Tiris Tenements Applications

 11  ASX and AIM Release: "Update to Curzon Offtake Agreement", 16(th) April
2024

 12  Tradetech Forward Availability Model (FAM) 1 average term price to 2040
(Real). Representing best case project development (supply) scenario

 13  Tradetech FAM 2 average term price to 2040 (Real). Representing
restricted project development scenario

 14  ASX and AIM Release: 15 Aug 2024 - Curzon Restructure and Placement

 15  ASX and AIM Release: 16 April 2024 - Offtake restructure delivers
significant value Curzon Restructure and Placement

 16  ASX Release: 5 Sept 2023 - Scoping Study Confirms Scale and Optionality
of Häggån and ASX Release: 10 October 2019 - "Häggån Battery Metal Project
Resource Upgrade Estimate Successfully Completed"

 17  ASX Release: 22 Aug 2012 - Outstanding Häggån Uranium Resource Expands
to 800 Million Pounds. This information was prepared and first disclosed under
the JORC Code 2004. It has not been updated since to comply with the JORC Code
2012 on the basis that the information has not materially changed since it was
last reported

 18  ASX Release: 5 Sept 2023 - Scoping Study Confirms Scale and Optionality
of Häggån

 19  ASX and AIM Release: 5 Sept 2024 - Haggan Project Exploitation Permit
application submitted

 20  ASX and AIM Release: 12 June 2024 - Aura increases Tiris Mineral
Resources by 55% to 91.3 Mlbs

 21  ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent
economics for the Tiris Uranium Project

 22  ASX and AIM Release: 11 Sept 2024 - Updated Production Target improves
economics at Tiris Uranium Project

 23  ASX and AIM Release: "Häggån Battery Metal Project Resource Upgrade
Estimate" 10 Oct 2019

 24  ASX and AIM Release: "Outstanding Häggån Uranium Resource expands to
800 million pounds" 22 Aug 2012

 25  ASX and AIM Release: "Scoping Study Confirms Scale and Optionality of
Häggån" 5 Sept 2023

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