Aura Energy Ltd (ASX:AEE, AIM:AURA) has taken another important step toward bringing the flagship Tiris Uranium Project in Mauritania to production by commencing dual funding workstreams aimed at underpinning the development.
The company has made two appointments to drive aspects of the funding process at a time of growing global demand for the key energy metal.
Two appointments
Orimco Pty Ltd has been appointed to arrange debt funding for Tiris and has engaged Macquarie Capital (Australia) Limited to progress a process to identify and engage with potential strategic investors in relation to a potential strategic investment in Tiris and Aura.
The funding process for Tiris follows hot on the heels of Aura’s recent Front End Engineering (FEED) Study which highlighted robust project economics with an NPV8 of US$388 million and IRR of 36% along with long-term growth opportunities.
“Critical steps”
Aura Energy’s MD and CEO Andrew Grove said: “The recent FEED Study ASX release concluded the Tiris Uranium Project is a near-term, low-cost, long-life mine with exceptional further growth opportunities and recent offtake agreement further enhanced the economics with a project NPV8% of US$388 million and IRR 36%, both post-tax.
“The appointment of Orimco as a debt advisor and Macquarie investigating strategic investment options are critical steps in advancing Tiris as we work towards a final investment decision at the end of 2024.”
READ: Aura Energy welcomes update to Curzon uranium offtake agreement
Strong interest
Pointing to the potential of the company’s strategy and the strength of the Tiris project as a future uranium supplier, Aura has received strong inbound interest from highly credentialled debt providers and strategic investors who recognise the potential undeveloped future value.
Aura said the aim of the funding process was to deliver the optimal package, de-risk the development of Tiris, optimise equity requirements and maximise the value of Tiris for shareholders.
Orimco has extensive experience in arranging bespoke debt programs for West African resources projects and has significant and valuable exposure working across a broad range of commodities, projects and locations including Mauritania.
Macquarie will assist with managing the strategic process with its role being complementary to Aura’s debt adviser, Orimco, with the objective of achieving an integrated funding solution for Tiris.
READ: Aura Energy raises A$2 million in strongly oversubscribed share purchase plan
Toward decision to mine
Aura is preparing for a decision to mine in late 2024 or early 2025 with this all-important step following the completion of the FEED study, the renegotiation of offtake arrangements with Curzon and the completion of the resource drilling program.
Before this decision is made, a number of steps will; be undertaken:
- Resource and mine planning updates following the resource drilling program;
- Establishment of an owner’s team;
- Finalisation of the construction scope and budget;
- Commitments to early works including water and electricity;
- Government development consents;
- Arrangements with key offtake partners; and
- Financing for the project development.
The company expects to make additional announcements in relation to each of these elements in the forthcoming months.
“We look forward to updating investors and other stakeholders as we continue to progress the Tiris Uranium Project through to a final investment decision and then into production,” Grove added.