London’s latest uranium share Aura Energy Limited (LON:AURA, ASX:AEE) got off to a premium debut on the AIM market on Monday.
Aura Energy shares changed hands as high as 1.55p on Monday.
In its AIM float Aura raised £2.24mln of new capital, selling new shares at 1.14p, and thus valuing the group at £7.45mln. It also raised the equivalent of £466,990 to what it described as sophisticated Australian investors, with shares sold at 2 Australian cents each.
Peter Reeve, Aura’s executive chairman, described the new listing and the fundraising as “an outstanding outcome”.
“We have always believed that, given our European and African focus, dual listing on AIM was both an attractive option for Aura and a natural marketplace for us.
“This is a transformational period for Aura, and as only the second quoted uranium company on AIM, we believe the company will generate significant traction for our shareholders as we progress our strategy of phased development and low capital cost projects to allow early cashflow generation particularly from the Tiris Uranium Project.”
Reeve added: “The success of this dual listing process is a vindication of Aura’s uranium assets in Mauritania and Sweden and its gold, soda ash and lithium tenements in Mauritania.
“This package of development and exploration assets has gained broad market appeal with investors and has been the subject of a full technical review by an independent competent person.”
He also highlighted that Aura Energy is now ideally positioned over the coming years as it looks to become a leading uranium developer.
“We believe there is a substantial uranium market opportunity ahead of us as there has been little new investment into the uranium sector, despite the world’s energy needs growing exponentially,” Reeve said.
He highlighted the group’s belief that nuclear energy will face a deficit of uranium supply, not least due China’s growth in nuclear power.
China is expected to double its nuclear generation capacity by 2020 and, according to Reeve, a substantial increase in uranium prices is projected by the end of the decade and that would coincide with the anticipated start-up of Aura Energy’s Tris mine.
Funds raised by Aura Energy are, among other things, earmarked for the completion of a feasibility study of the Tiris project, which is located in Mauritania.