Aura Energy Ltd (ASX:AEE, AIM:AURA) shares shone 10% brighter at 10.62p after the company secured C$10 million in funding from strategic investors, valuing its Swedish polymetallic Häggån project at C$50 million.
The funding will be provided to SIU Metals Corp, an unlisted Canadian company that will acquire 100% ownership of the Häggån project.
Aura, which will retain a 78.7% stake in SIU Metals after the transaction, plans to appoint new officers and directors ahead of an intended listing for SIU on the TSX Venture Exchange later this year.
Proceeds from the financing will support permitting, exploration and advancement of Häggån, including surrounding tenements.
The project is expected to benefit from recent changes to Sweden’s Minerals Act, which now allows uranium exploration and extraction.
Aura said the transaction provides a dedicated pathway for funding and growth, while retaining exposure to future project upside.
Aura Energy is developing the Tiris uranium project in Mauritania and the Häggån polymetallic project in Sweden.