Aura Energy Ltd (ASX:AEE, AIM:AURA) has completed the restructure of its uranium offtake agreement with Curzon Uranium Ltd, increasing the price receivable for planned production at the flagship Tiris Project in Mauritania, West Africa, and adding value for the project.
Aura managing director and CEO Andrew Grove said: “We are pleased to conclude the value accretive offtake restructure and we welcome Curzon – a leading global trader in uranium – as a new significant long-term Aura shareholder and partner for the development of the Tiris Uranium Project.
“Curzon’s deep market insights and extensive networks will be of significant benefit to the development and successful operation of the Tiris Uranium Mine and will therefore be of enormous benefit to all Aura shareholders and stakeholders.”
The now restructured offtake agreement improves the Tirus project value (NPV8) by US$22 million to US$388 million and increases the internal rate of return (IRR) by 2% to 36%, compared with front end engineering design (FEED) study economics delivered earlier this year.
The key details
Curzon will receive the US$3.5 million (A$5.4 million) restructuring fee in 29,914,530 Aura shares priced at A$0.18 per share. These restructuring fee shares will be made via a private placement to Curzon and escrowed until first production from the project.
Aura will also make a private placement to Curzon of 29,914,530 Aura shares, valued at US$3.5 million (A$5.4 million) in aggregate. Half of the placement shares will be escrowed until the earlier of June 30, 2025, or until a final investment decision (FID) is made on the project.
The agreement will also see Aura issue 5,982,906 unlisted options at A$0.20 per option to Curzon, expiring September 1, 2025.
All up, Curzon will be issued 59,829,060 new Aura shares and 5,982,906 options. Once all shares are issued, Curzon will hold around 7.2% of the undiluted issued shares in Aura.
With the additional funds, Aura says it is well funded to progress the project through to FID by the first quarter of 2025.