Aura Energy Ltd (ASX:AEE, AIM:AURA) has added A$2 million to the war chest with a well-supported and oversubscribed share purchase plan (SPP).
The company received valid applications for just over 19.3 million shares, which would’ve translated to about A$3.47 million, substantially exceeding the targeted amount.
Due to the terms of the SPP, Aura has had to undertake a pro-rata scaleback of applications, with each applicant receiving less than they applied for and all excess money refunded.
Advancing Tiris Uranium Project
The A$2 million SPP follows a share placement completed earlier this year, which raised A$16.2 million for a total of A$18.2 million raised.
The funds raised will go to pre-development activities at the Tiris Uranium Project, where Aura expects to make a final investment decision this year and begin production in 2026.
The company’s February 2024 front-end engineering design (FEED) study demonstrated Tiris to be a near-term low-cost uranium mine capable of producing 2 million pounds per year with a 17-year mine life.
Capitalising on the growing demand for nuclear power as a cleaner energy source, Aura intends to transition from an explorer to a producer of uranium as the world shifts towards a decarbonised energy sector.
The money will also go to developing the Häggån Project in Sweden and provide general working capital for the company.
The Häggån Project holds a 2.5-billion-tonne vanadium, sulphate of potash and uranium resource. A scoping study based on only 3% of the resource outlined a 27-year mine life based on mining 3.5 million tonnes per year.