Cashed up Aura Energy targets uranium development

African and European-focused uranium hunter Aura Energy has raked in a further $2m in funding
This adds to recent pro-investor placement funding of $16.2m
Funds will largely go towards developing the company’s Tiris uranium mining project in Mauritania

Special Report: Cashed-up uranium and polymetallic explorer Aura Energy (ASX:AEE) brings in another $2 million to put towards its big African uranium project.

A successful $2m capital raise will add to an already extremely large pool of recent fresh funding for Aura Energy, which has major uranium and polymetallic projects in Africa and Europe, with particular focus on the development of the Tiris uranium project.

A good deal of the funding will go towards Tiris, which a February FEED (Front End Engineering Design) study revealed to be a near-term low-cost 2Mlbs U3O8 per annum uranium mine with a 17-year mine life, and with excellent economics and optionality to expand to accommodate resource growth.

$2m raise adds to $16.2m funding from professional investors

There was “overwhelming” interest in the share purchase plan which was heavily oversubscribed.

Aura Energy received valid applications for a total of 19,325,000 fully paid ordinary shares in the company, for about $3,478,500 under the SPP, far exceeding the $2 million target.

The SPP was priced at A$0.18 per SPP Share and included three free attaching options for every four SPP Shares to be issued, with the SPP Options exercisable at a price of A$0.30 per SPP Option and expiring two years from the date of issue.

When the SPP was announced on March 18, it was in connection with a $16.2 million placement to professional sophisticated investors.

So, together with the SPP placement, the company has now raised a total of $18.2 million before costs.

With a further $5.4m expected from the restructure of the Curzon offtake, it will give Aura a very healthy cash position to execute its development plans at Tiris.

What happens next?

The company notes that the funds raised under both the SPP and the pro-investor placement are now proposed to go towards the following:

Resource update expected this quarter following the recently completed drilling campaign at Tiris.
Pre-development activities at the Tiris Project, with a final investment decision expected in 2024 and production expected in 2026.
Supporting development of the Häggån Project in Sweden. Häggån contains a global-scale 2.5Bt vanadium, sulphate of potash and uranium resource.

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.