Aura Energy Ltd (ASX:AEE, AIM:AURA) has received firm commitments to raise A$10 million via a placement and will seek a further A$1 million through a share purchase plan (SPP), with funds to be used across its uranium assets.
The company is transitioning from a uranium explorer to a producer in order to capitalise on the rapidly growing demand for nuclear power as the world continues to shift towards a decarbonised energy system.
Aura will place 54,054,055 fully paid ordinary shares at A$0.185 per share to sophisticated, institutional and professional investors via the placement, which will be followed up by a SPP, which gives eligible shareholders the opportunity to purchase up to A$30,000 worth of shares at the same price as the placement.
This SPP is expected to raise a further $1 million.
The placement and SPP price represents a discount of 23.6% to A$0.242, being the volume-weighted average market price (VWAP) of the shares over the last five trading days on which sales in the shares were recorded before the day on which the plan was announced.
The SPP will not be underwritten and in the event that less than A$1 million is raised under the plan, the full amount of the shortfall may be placed at the discretion of the board subject to compliance with all necessary legal requirements.
Use of funds
Aura has major uranium and polymetallic projects with large resources in Africa and Europe and is focused on resource expansion and uranium production at the Tiris Project, a major greenfields uranium discovery in Mauritania.
In August 2021, Aura announced a resource upgrade of 10% or 5 million pounds U3O8 bringing the total JORC resource to 56 million pounds at a 100 ppm U3O8 lower cut-off grade.
The company completed a definitive feasibility study (DFS) for the Tiris Uranium Project in August 2019, with a capital estimate update in 2021, to reflect current global pricing, reconfirming Tiris as one of the lowest capex, lowest operating cost uranium projects.
Raised funds will go towards:
- progress of the Tiris Project in Mauritania towards development;
- target the growth in uranium resources in the Tiris Zemmour province of Mauritania;
- completion of work to enable the granting of the Häggån Exploitation Permit;
- cover corporate and offer related costs; and
- general working capital.
Indicative timetable
The SPP will unfold as follows:
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