Aura raises $9m with big uranium backing

Aura Energy’s $9m raising attracts old and new high-quality investors
Final investment decision expected early next year for uranium production as soon as 2026
One of the key players in an increasingly attractive Mauritanian mining frontier

Special Report: Aura Energy has $9m to be added to the accounts and a new cornerstone investor in major uranium fund Sachem Cove to take Tiris through to a final investment decision.

Done at a 14c price and a 9.7% discount to its last closing price, the placement had strong backing from professional and sophisticated investors as Aura Energy (ASX:AEE) looks towards production as soon as 2026.

International uranium investment group Sachem Cove Partners notably covered a big $6.5m chunk of the raising to now hold a 5.1% stake in AEE.

The funds are earmarked for use in advancing what Aura believes is a low-cost, high-value asset through to and beyond a final investment decision expected for the first quarter of next year.

Aura managing director and CEO Andrew Grove extended the company’s gratitude to existing shareholders and welcomed several new highly credentialed investors to the register.

“We are delighted to welcome Sachem Cove as a significant shareholder in Aura,” Grove said.

“Their extensive expertise in the uranium markets, both physical and equity, underscores the quality and deep value at the Tiris Uranium Project and for Aura’s broader growth potential.

“This investment also reflects the significant progress our team has made throughout the year in de-risking and advancing the project toward development, targeted for 2025.”

Path to production

Included in Argonaut’s list of the ASX’s top undeveloped assets (one of two uranium players to make the cut), Aura is not alone in seeing Tiris as one of the world’s better near-term uranium opportunities.

A recent 49% uplift to 33.9Mlb of uranium underpinned Aura’s development plans, with an upgraded reserve covering 64% of the production target further reducing the risk.

And though sovereign risk in Africa is under the spotlight, the International Trade Administration have noted Mauritania’s largely untapped mineral terrain and strategic vision to combine for an enticing frontier for investment.

A number of major mining operations, notably in iron ore, are already producing in the Northwest African nation.

Aura is one of the nation’s pre-eminent mineral players alongside Kinross Gold and could soon join the US$12b Canadian in production.

Stockhead contributor Kristie Batten put a spotlight on the pivotal weeks ahead for Aura, and the company has claimed another milestone with the final decision over Tiris soon in sight.

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.