TIDMAURA
RNS Number : 5044E
Aura Energy Limited
06 November 2020
AURA ENERGY LIMITED
("Aura" or the "Company")
September 2020 Quarterly Report
TO VIEW THE FULL PDF VERSION OF THIS REPORT CLICK HERE:
http://www.rns-pdf.londonstockexchange.com/rns/5044E_1-2020-11-6.pdf
KEY POINTS:
QUARTER SUMMARY
Aura Energy continues to progress its asset base where possible
despite being constrained in activity due to the ongoing
shareholder activism which is undermining equity raising to
continue work programmes.
Covid-19 has also restricted access to our projects (both the
Australian government and to a lesser extent Mauritanian government
travel bans).
Aura lists its assets as:
-- the construction-ready Tiris Uranium Project
-- Excellent gold assets
-- Häggån Vanadium Project
-- Swedish compensation claim
The main activity during the quarter revolved around a corporate
transaction for the gold assets to list these assets in
Toronto.
Aura continued discussions with US utilities for additional
long-term uranium sale contracts to support the Export Credit
Agency financing process; however, the weakening of the uranium
price in the quarter has impacted discussions.
The Swedish compensation claim is ongoing and focussed on
funding arrangements for this litigation.
The Company held its third s.249D requisition for a shareholders
meeting over a period of 8 months where various groups have
attempted to appoint individuals based in Hong Kong, Indonesia and
Panama; however in the latest meeting all were again defeated.
TIRIS PROJECT, MAURITANIA (AURA 85%)
Other than additional uranium offtake discussions with US
utilities no activity took place on the Tiris Project.
HÄGGÅN BATTERY METALS PROJECT, SWEDEN (AURA 100%)
Activities at the Häggån Battery Metals project remained on
care-and-maintenance.
The Swedish compensation claim remains ongoing and Aura
continues to be steadfast in action to recover the value of the
confiscated asset.
TASIAST SOUTH GOLD PROJECT, MAURITANIA (AURA 100%)
Aura completed a number of additional steps as it moves to
finalise its C$4.5 million (A$4.8 million) gold funding transaction
with Archean Gold.
As previously advised, this deal, initially sponsored by
TSX-listed Chilean Metals, is now being completed with the private
vehicle Archean Gold Inc. which will undertake an Initial Public
Offering (IPO) on the TSX.
The key items that have been completed are as follows:
-- Aura Energy has recently completed the payment of its Entry
Fee US$100,000 to Nomads Mining Company sarl to commence the
farm-in process of expending US$1,000,000 to secure a 70% equity
interest in the Nomads ground.
-- Archean Gold has successfully completed due diligence,
including a visit to the tenements held by the Company in
Mauritania
-- Terry Lynch, CEO of Chilean Metals, has confirmed to the
Company that he will take on the Chairman of the new gold vehicle,
Archean Gold Inc
-- A 43-101 Technical report is being prepared and will be available before the listing.
-- Mackie Research Capital Corporation has been appointed to
lead the Archean Gold Inc IPO on the TSX
-- An initial C$500,000 of seed investment has now been
committed pre-IPO, with those investors agreeing to follow their
investment into the IPO
-- The Archean IPO is expected to occur in early Q1 2021.
The transaction envisages Aura progressively vending its
Mauritanian gold and base metal tenements into Archean Gold for
various staged payments. Archean Gold will receive payments
totalling C$4.5 million before October 2021.
At the completion of the deal Aura will not have contributed any
cash but will have almost A$5 million applied to its gold tenements
which the Company believes to be very prospective. Any rise in the
Archean share price will be reflected in Aura's share price.
At the completion of that payment schedule transaction, Aura
Energy will own 50% of Archean Gold. This values the gold tenements
at C$9 million or A$9.6 million.
The proposed transaction will require shareholder approval and
the Company will advise shareholders when the meeting will take
place.
CORPORATE
Shareholder Action
During the quarter, Aura secured shareholder support which
defeated all the resolutions put to a s.249D general meeting of
shareholders brought by ASEAN Deep Value Fund to remove directors
and place its own nominees on the board of directors.
ASX Suspension
Aura has been suspended now for a number of months.
The ASX has now imposed a two-year placement holiday on the
Company for the omission of a single definition in a 60-page
convertible note agreement regarding excessive conversions if the
market capitalisation of Aura fell below a certain level.
The Company disclosed the impact of the definition to the ASX
through a cleansing statement on 13 March 2020.
The Company is working with the ASX for reinstatement of the
Company on the ASX and is proposing to undertake a rights issue and
a share purchase plan with the shortfall in the rights issue being
placed.
Aura Energy Directory
ASX Code: AEE
AIM Code: AURA
Shares in issue: 2,557,535,966
Unlisted Options
on issue: 94,104,161
Performance Rights
on issue: 10,0000,000
Website: www.auraenergy.com.au
For further information please contact:
Aura Energy Limited Telephone: +61 (3) 9516 6500
Peter Reeve (Executive Chairman) info@auraenergy.com.au
SP Angel Corporate Finance LLP Telephone: +44 (0) 203 470
(Nominated Advisor and Joint Broker) 0470
Ewan Leggat
Caroline Rowe
WH Ireland Limited
(Joint Broker)
Adrian Hadden Telephone: +44 (0) 207 220
James Sinclair-Ford 1666
Yellow Jersey PR Limited Telephone: +44 (0) 7769 325
Felicity Winkles 254
Joe Burgess
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
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