Aura Energy Ltd (ASX:AEE, AIM:AURA) welcomes an update to the recent restructure of the Curzon Uranium Ltd uranium offtake agreement which materially increases the price receivable for planned uranium production from the Tiris Uranium Project in Mauritania and releases significant value.
The update sees Curzon electing to receive the US$3.5 million (A$5.4 million) restructuring fee in Aura shares priced at A$0.18 per share, in lieu of a cash settlement.
Curzon has also agreed to take a US$3.5 million (A$5.4 million) placement of Aura shares at A$0.18 per share, which adds to the company’s cash reserves.
Improves NPV
The restructured offtake agreement improves the project NPV8 by US$22 million to US$388 million and increases the IRR by 2% to 36% compared to Front End Engineering Design (FEED) study economics delivered in March 2024.
Aura’s managing director and CEO Andrew Grove said: “We welcome Curzon as a significant long-term Aura shareholder and partner for the development of the Tiris Uranium Project.
"Curzon is a leading global uranium trader and their deep market insight and networks will be of significant benefit to the development and successful operation of the future Tiris Uranium Mine and will of benefit to all Aura shareholders.”
Shares to be escrowed
The restructuring fee shares will be escrowed until first production while 50% of the placement shares will be escrowed until the earlier of June 30, 2025, or a Final Investment Decision (FID) on the project.
Curzon will be issued 59,829,060 new shares in Aura and will hold approximately 8% of the issued stock in Aura at that time.
Shares will be issued at the conclusion of final documentation and subject to the company’s placement capacity being refreshed at the upcoming shareholders’ meeting on May 21, 2024.