Aura Energy Ltd (ASX:AEE, AIM:AURA) will work even more closely with the Mauritanian Government after mining conventions were signed for an initial period of 30 years.
This supports further transformational agreements including a shareholder’s agreement with ANARPAM (Agence Nationale de Recherches Géologiques et du Patrimoine Minier) in relation to the Tiris Uranium Project in Mauritania.
Importantly, the approval and execution of the mining conventions provide AEE with tenure security and fiscal certainty.
Aura chairman Phil Mitchell said, “What we see is potential of the Tiris region in the uranium world.
"With the formalisation of our Mining Convention and our partnership with ANARPAM, we are keen to work with the Government of Mauritania to develop the Tiris resource.
"Our increased knowledge and our belief in the quality of the resource gained from the drilling program and the expansion studies, to be released imminently, we believe will allow us to develop a world-class uranium operation.”
Agreement provides stability
Aura has signed the Mining Convention with the Mauritanian Government to give it stability and define the legal and economic conditions that allow mining activities to occur over a period of 30 years.
The agreement will see the government provide the financial, fiscal and customs applicable to allow AEE to start operating activities. The key aspects of the mining conventions are:
Speaking of the agreement director general Mohamed Yahya Hammoudy said, “The signing of the agreements is the first step for Mauritania to develop its first uranium mining project in North Africa.
"The signing of the Mining Conventions pact between the Government of Mauritania and Aura Energy to enable the development of Mauritania's major uranium project 'Uranium de Tiris' through a partnership of cooperation and collaboration.”
The Minister of Petroleum, Mines and Energy Excellency Abdessalam Ould Mohamed Salah said this agreement was one of significance for the company.
“The Islamic Republic of Mauritania under President Ghazouani’s leadership recognises the importance of the mineral wealth of our country and how projects like this provide revenues for the State, employment, training, and technology that benefits all Mauritanians.
"This and other important project developments will make Mauritania a significant global energy supplier.
“The agreement between Mauritania and Aura Energy for the development of this significant uranium project is part of the government’s strategy in the joint development of mining and energy projects in the region in oil, gas, uranium or other recoverable mineral substances.”
Importance of shareholders agreement
Aura subsidiary Tiris Ressources SA and the Mauritanian Government’s ANARPAM signed a shareholders agreement that creates a long-term partnership with Mauritania in the development and operation of the Tiris Project.
The key terms of the agreement include:
The agreement is consistent with the Mauritanian Mining Code and provides for up to 20% ownership. Further to this, it creates alignment with the government of Mauritania having ANARPAM as Aura’s partner for the development of the Tiris Project.
Aura and ANARPAM signing the shareholders’ agreement.
Aura’s managing director Dave Woodall said, “We are excited to work with director general Mr El Hachmy Cheikh Sidatty Moulaye Abdallah and the ANARPAM team in partnership to develop the Tiris Project and deliver our objective to grow production to more than 3.0 million pounds U3O8 per year, with both Aura and the people of Mauritania sharing ownership of the project.
“The Tiris Project is anticipated to increase the diversity of global uranium supply at a time when the market is predicting a supply deficit, and as the world responds to the need for more sources of low-emissions energy. The conflict in Ukraine and flow effects to energy markets have created an environment where alternatives to gas and oil are desperately needed.”
In response, ANARPAM director general El Hachmy Cheikh Sidatty Moulaye Abdallah said: “First of all, the Tiris Uranium exploitation project will be for several reasons one of the most important mining projects in Mauritania.
"Firstly, by the fact that it will be the first uranium mining project in North Africa and secondly, it will make Mauritania a supplier of energy, particularly in the particularly difficult global context, marked by the period after COVID-19 and the impacts of the Russia-Ukraine war around the world among others.
“The project is even more important for Mauritania through the significant expectations in terms of revenues for the State, in terms of employment, training and technology transfer.
"Finally, the signing of the shareholder pact between Aura Energy and ANARPAM demonstrates the great mark of trust between the two partners, now united together for the development of Mauritania's major uranium project 'Uranium de Tiris' through a win-win partnership.
“The union (Aura Energy/ANARPAM) will be further consolidated and will result in the joint development of several other mining projects in the region, whether for uranium or other recoverable mineral substances.”
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