Aura Energy Ltd (ASX:AEE, AIM:AURA) will accelerate pre-development activities at the Tiris Uranium Project in Mauritania after raising approximately A$16.2 million in a well-supported placement that attracted significant domestic and international interest.
As a result, a broad range of high-quality institutions have been added to the company’s register with the raising also drawing strong support from existing institutional shareholders.
The company will issue approximately 90.2 million fully paid ordinary shares at A$0.18 per share.
Aura Energy also proposes to hold a share purchase plan (SPP) to raise up to $2 million, thus enabling existing shareholders to participate on the same terms as the placement, subject to shareholder approval.
Use of funds
Funds raised will assist Aura with pre-development activities at Tiris with FID expected in 2024 and production expected in 2026.
The capital raising will also support development of the Haggan Project in Sweden and provide the company with additional working capital.
“Delighted with support”
Aura’s managing director and CEO Andrew Grove said: “We are delighted with the support for the placement and welcome a number of highly credentialled investors to the register.
“Existing shareholders can participate in this exciting period of growth on the same terms as the placement through the SPP.
“Funds raised will help Aura accelerate advancing the Tiris Uranium Project towards FID this year and continue exploration to demonstrate the significant resource growth potential of the area.
“The Tiris Project positions Aura as a significant near-term uranium producer with initial production estimated to commence in 2026.”
Demonstrating his confidence in the company and its uranium strategy, Grove has committed to investing A$100,000 on the same terms as the placement, subject to shareholder approval.
The issue price of $0.18 per placement share represents a 18.2% discount to the last closing price of $0.22 on March 14, 2024, a 23.5% discount to the 5-day volume weighted average price of shares, and a 22.3% discount to the 15-day VWAP of shares.
Aura expects to issue the placement shares under the placement on or around Monday, March 25, 2024.
Share purchase plan
Existing eligible shareholders with a registered address in Australia, the United Kingdom or New Zealand recorded on the company’s share register at 5.00pm (AWST) on Friday, March 15, 2024, will be able to participate in the SPP.
They will be offered the opportunity to apply without incurring brokerage fees for up to $30,000 worth of new shares, at $0.18 per share.
The company proposes to raise a total of $2 million (before costs) but reserves the right in its sole discretion to scale back applications.
A prospectus is expected to be dispatched to eligible shareholders and released to the ASX indicatively on or around April 8, 2024.
Issue of options
Participants in the placement and the SPP will also receive three new options for every four shares subscribed.
New options are intended to be listed subject to satisfying the quotation requirements of ASX and will have an exercise price of A$0.30 and expiry of two years.
Approximately 67.7 million options are anticipated to be issued in connection with the placement and up to 8.3 million options through the SPP.
The issue of SPP shares and SPP options will be subject to Aura shareholder approval proposed to be sought at a general meeting expected to be held in late April 2024.