- Aura Energy (AEE) enters a US$10 million (A$13.7 million) offtake financing agreement with London-based commodities firm, Curzon Uranium Trading
- This includes up to a further US$10 million facility which takes the maximum potential of the deal to US$20 million (A$27.5 million)
- Aura is applying the funds to late stage construction and project works at its Tiris uranium project in Mauritania
- AEE is pleased to be able to progress Tiris into production as interest in uranium increases due to the global shift towards zero carbon energy
- Company shares are up 9.09 per cent to trade at 24 cents at 1:25 pm AEDT
Aura Energy (AEE) has entered a US$10 million (A$13.7 million) offtake financing agreement with London-based commodities firm Curzon Uranium Trading.
The company will use the funds for late stage construction and project works at its Tiris uranium project in Mauritania.
As an additional boost, the agreement includes up to a further US$10 million facility at the lender’s sole discretion which takes the total maximum potential of the deal to US$20 million (A$27.5 million).
The offtake financing deal comprises a variation of the uranium offtake agreement signed with Curzon in January 2019 and extends its nine-year term to include an expected production start date in 2024.
The original deal involved Aura selling 800,000 pounds of uranium at fixed prices, 750,000 pounds at market-linked pricing and a further 1.05 million pounds available to Curzon as optional volumes.
Curzon Head of Uranium, Bram Vanderelst, commented on the agreement.
“We were pleased to have entered an offtake financing agreement with Aura Energy, with uranium now positioned as one of the energy sources of choice, as the world moves towards a greener future,” he said.
A driving factor behind adding a financing component to the 2019 agreement is the recently updated definitive feasibility study for Tiris and the increasing demand for uranium due to the global shift towards zero carbon energy.
Aura Chairman Martin Rogers was delighted to have signed the deal with Curzon.
“We are delighted to have entered the offtake financing agreement with Curzon, as this perfectly positions Aura Energy with a low capex and low operating cost project, financing agreement and offtake agreement to rapidly progress Tiris uranium into production,” he said.
“Sentiment towards uranium and nuclear power is shifting rapidly amongst investors and we see considerable potential to expand our resource, production throughput and undertake further offtake finance agreements.”
The current deal is for up to 15 per cent of proposed production from the Tiris uranium project which enables Aura to undertake further finance agreements.
Company shares were up 9.09 per cent to trade at 24 cents at 1:25 pm AEDT.