Aura Energy enters trading halt with offtake financing news approaching
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Recently relisted Aura Energy has entered a trading halt ahead of the finalisation of an offtake financing agreement, as it progresses flagship Tiris uranium project.
Aura’s (ASX:AEE) (AIM:AURA) securities on the ASX are expected to remain in the halt until the beginning of trade on Thursday October 7 or when an announcement is made.
The company recently relisted on the ASX and is advancing the Tiris Uranium Project in Mauritania on Africa’s Atlantic coast.
In the past few months the company has been putting in several more building blocks as it seeks to be the first new uranium project to commence construction since the uranium price started its stellar rise.
Firstly, the project was the recipient of a 10% resource upgrade in August, taking its total JORC resource to 56 million pounds at a 100-parts-per-million uranium oxide cut-off grade.
It also had a capital estimate update completed that month and subsequently updated its definitive feasibility study with 2021 figures – making its DFS one of if not the most current compared with its ASX listed uranium peers.
Work at Tiris is now advancing with stage two activities currently underway, including an opportunity review with the aim of further lowering costs, a resource conversion, and further exploration discovery and drilling with the aim of expanding the existing resources, with a vanadium by-product review also providing potential to further lower costs.
Aura is also undertaking a net-zero emissions study at Tiris and beginning a review of the steps required to initiate the project’s development.
The company was recently flagged by Stockhead as a uranium play ready to pounce when the price is right.
Aura recently stated that the improved uranium price was driving its review of Tiris, and also influenced the financing options available to the company.
On relisting late last month, Aura said it had completed its first successful drillhole during a water drilling program on Tiris.
The drillhole encountered good flows of water commencing from 35m depth, with a preliminary assessment indicating a flow rate of 17,000 litres per hour.
The testing followed up a water drilling program started by Aura at the project in 2019.
“The company is very confident in the process it has developed for identifying and targeting water bearing structures and we aim to continue testing further targets, as Aura further develops the project and advances towards near-term production,” Managing Director & CEO Peter Reeve said at the time.
Aura is also drilling bedrock at the Nomads JV tenement within the Tasiast South gold project, also in Mauritania, where it is earning up to a 70% stake.
This article was developed in collaboration with Aura Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.