REG - Aura Energy Limited - Strategic Funding Process - Tiris Uranium Project

Aura EnergyAnnouncement

03/06/2024 07:00

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RNS Number : 8125Q  Aura Energy Limited  03 June 2024

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                                                                                                             3 June 2024

 

 Strategic funding process to progress development of the Tiris Uranium Project

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or "the Company") is pleased
to announce it has commenced dual funding workstreams aimed at underpinning
the development of the Company's flagship Tiris Uranium Project ("Tiris") in
Mauritania.

Aura has appointed Orimco Pty Ltd ("Orimco") to arrange debt funding for Tiris
and has 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. The
strategic funding process follows Aura's recently completed Front End
Engineering ("FEED") Study which highlighted Tiris' robust economics (NPV(8)
US$ 388M, IRR  36%) 1  (#_ftn1) and long-term growth opportunities.

Aura has received strong inbound interest from both highly credentialled debt
providers and strategic investors who recognise the potential undeveloped
future value at Tiris. The aim of this funding process is to deliver the
optimal funding package, de-risk the development of Tiris, optimising equity
requirements and to maximise the value of Tiris for Aura shareholders.

The team at Orimco has extensive experience in arranging bespoke debt programs
for West African resources projects and has significant and valuable exposure
working across a broad range of commodities, projects and locations including
Mauritania.

Macquarie has been engaged to assist with managing the strategic process with
its role complementary to Aura's debt adviser, Orimco, with the objective of
achieving an integrated funding solution for Tiris.

Following the completion of the FEED study, the renegotiation of offtake
arrangements with Curzon 2  (#_ftn2) and the completion of the recent resource
drilling program, Aura is preparing for a decision to mine in late 2024 or
early 2025.

The decision to mine necessitates the coming together of numerous key steps,
including:

·    Resource and mine planning updates following the resource drilling
program

·    Establishment of an owner's team

·    Finalisation of the construction scope and budget

·    Commitments to early works including water and electricity

·    Government development consents

·    Arrangements with key offtake partners

·    Financing for the project development

Aura expects to make additional announcements in relation to each of these
elements over the forthcoming months.

 

Aura Energy's MD and CEO Andrew Grove commented:

"The recent FEED Study ASX release concluded the Tiris Uranium Project is a
near term, low cost, long life mine with exceptional further growth
opportunities(1) and recent offtake agreement further enhanced the economics
with a project NPV(8%) of US$388M and IRR 36%, both post tax 3  (#_ftn3) .

"The appointment of Orimco as a debt advisor and Macquarie investigating
strategic investment options are critical steps in advancing Tiris as we work
towards a final investment decision at the end of 2024.

"We look forward to updating investors and other stakeholders as we continue
to progress the Tiris Uranium Project through to a final investment decision
and then into production."

 

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 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  (#_ftnref1) ASX release 28 Feb 2024 - "Aura's Tiris FEED Study returns
Excellent Economics" and ASX release 16 April 2024 - "Offtake restructure
delivers significant value to the Tiris Uranium Project"

 2  (#_ftnref2) 2024 - "Offtake restructure delivers significant value to the
Tiris Uranium Project"

 

 3  (#_ftnref3) ASX release 16 April 2024 - "Offtake restructure delivers
significant value to the Tiris Uranium Project" and ASX release 16 April 2024
- "Offtake restructure delivers significant value to the Tiris Uranium
Project"

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