Aura Energy (ASX:AEE) is raising up to $1.57 million through a non-renounceable rights issue to commence the first stage of the feasibility studies for the Reguibat uranium project in Mauritania.
Under the rights issue, all shareholders will have the right to subscribe for one new share priced at $0.03 each for every four shares held.
In addition, one free option exercisable at $0.06 and expiring on 1 September 2015 will be issued for every two shares held.
Proceeds from the rights issue will also be used to maintain its tenements in Mauritania and Sweden as well as general working capital.
A preliminary Scoping Study for the Reguibat uranium project has demonstrated that it could generate a high return with strong long term cash flows.
Highlights of the study include:
- Life of mine average 750,000 pounds U3O8 production for at least 15 years;
- 1 million pound per year production in early years from high grade areas;
- Low capital cost of US$45 million;
- Average operating cost of US$30 per pound of U3O8;
- Pre-tax cash flow of A$360 million; and
- IRR of 78% pre-tax and royalties.
This is based on total Indicated and Inferred Resources of 49 million pounds of U3O8.
Aura also plans to undertake further drilling on its tenements in the coming year.
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