- Aura Energy (AEE) receives firm commitments to raise $8.8 million through an oversubscribed placement for its Tirus uranium project in Mauritania, Africa
- The company will issue 35.3 million new shares at a price of 25 cents each, representing a 20 per cent discount to the five day volume weighted average price
- Majority of the funds will be used to complete a resource enhancement program at Tiris and commence the engineering phase of the project
- The remaining funds will be utilised for general working capital and corporate costs
- Shares have ended the day 7.46 per cent lower at 31 cents each
Aura Energy (AEE) has received firm commitments to raise $8.8 million through an oversubscribed placement for its Tirus uranium project in Mauritania, Africa.
The company will issue 35.3 million new shares at a price of 25 cents each, representing a 20 per cent discount to the five-day volume-weighted average price.
The funds will mostly be used for the Tirus uranium project, with $7.6 million to be allocated towards the project’s advancement.
The remaining funds will be utilised for general working capital and corporate costs.
The placement was supported by existing shareholders and new institutional investors from Australia, the US, and Canada.
The new shares will be issued on Friday with trading on the ASX to commence next Monday.
Chief Executive Officer Dr Will Goodall said the funds will allow the company to complete a resource enhancement program at Tiris and commence the engineering phase of the project.
“The uranium market is strong, reflecting the rapidly emerging understanding of the critical role that nuclear energy will play in the energy mix of a Net Zero Emission world,” he said.
“The geopolitical situation will continue to introduce some volatility, however the fundamental lack of primary supply in the uranium market should continue to underpin a strengthening position for near term development projects, such as Aura’s Tiris project.”
Shares ended the day 7.46 per cent lower at 31 cents each.