Aussie mining group Aura Energy Limited (ASX:AEE) is coming to London as aims to fund a feasibility study for an open pit uranium mine project in Mauritania.
The project, named Tiris, is host to some 49mln pounds of uranium resources and it is estimated that a mining operation could achieve high recovery rates of around 94%.
Whilst a feasibility study has yet to be completed, it has been estimated to be a low cost operation (of about US$30 per pound) with capex costs seen at just US$45mln - a Chinese group has signed an agreement covering project and equipment financing.
If the company secures the funding it is seeking in London it aims to complete the feasibility study next year.
Aside from Tiris, Aura Energy also has the larger Häggån, in Sweden, where there’s an estimated 803mln pounds of uranium. Here, capital costs are much more substantial, in excess of US$500mln.
Peter Reeve, Aura Energy executive chairman, sees London’s AIM market as “an attractive marketplace” for the company given the European and African focus of the business.
Meanwhile He described it as a “transformational time” for Aura Energy as it looks to advance assets towards becoming a high-margin, profitable uranium producer in the near to medium term.
“We believe the market opportunity for the next generation of uranium production projects is evident and the long-term uranium growth fundamentals are highly positive,” Reeve said in a statement.
“There has been little new investment into the uranium sector, yet the world’s energy needs are growing exponentially and we believe the resultant supply deficit in nuclear energy is significant.”
Stockbroker WH IRELAND is acting as nominated advisor and sole broker to Aura Energy for the London IPO.