Aura Energy (ASX: AEE) should firm in trade after securing a $3.8 million funding package over 24 months to complete a scoping study over its Reguibat uranium project in Mauritania.
Aura believes Reguibat provides the best near term cash flow opportunity, and thus is focusing energy and resources in that direction.
Reguibat holds a near surface resource of 49 million pounds of uranium with initial leach tests achieving 94% recovery in just 4 hours.
The company holds another uranium project in Europe, and when combined with Reguibat, holds a total resource base of 852 million pounds of inferred uranium resource.
Notably, this is the largest uranium resource base of any ASX listed company, with the exception of BHP Billiton (ASX:BHP).
Relative to the size of its combined uranium resource, Aura appears modestly valued at under $9 million, especially so after Japan recently revealed a pro-nuclear energy plan involving the restart of Fukushima reactors left dormant following damage caused by the 2011 earthquake and ensuing tsunami.
The Japanese government released the anticipated draft of its Basic Energy Plan, which committed to nuclear power as a central source of Japan’s ongoing energy requirements.
Under the funding arrangement, Aura will receive $325,000, comprised of a $250,000 convertible security and a $75,000 placement of Aura shares to Lind.
Lind will then invest a minimum of $75,000 and up to $150,000 in monthly share subscriptions over the next two years, issued at a 10% discount to 3 day VWAP.
The Lind Partners is a New York-based alternative asset management firm that manages a family of institutional investment funds focused on small- and mid-cap publicly traded companies, with an emphasis on Australia, Canada and the United Kingdom.
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