TIDMAURA
RNS Number : 4491Z
Aura Energy Limited
21 May 2021
21 May 2021
AURA ENERGY LIMITED
("Aura Energy" or the "Company")
Successful Rights Issue Completed
Highlights:
-- Aura Energy has successfully completed a Rights Issue with
1,690 shareholders or 83% of the eligible registry participating,
and all directors taking up their full entitlement.
-- The Rights Issue is the product of a strategy conceived by
some of the Company's major shareholders to rebuild Aura Energy
following the AGM on 17 March 2021, whereby all 17 resolutions were
voted on with 95% acceptance
-- The proceeds of the Rights Issue, Loyalty Options Entitlement
Rights Issue and placement will provide A$5.8m to the Company,
which will be used to expedite the development of the zero emission
Tiris Uranium Project. A number of initiatives, including updating
the engineering study for the Definitive Feasibility Study (DFS)
and drilling the deposit with the aim of expanding the existing
resources will be undertaken.
-- It is further proposed that the Company will also offer 1
Loyalty Option Entitlement Rights Issue for every 3 Shares held one
month following the reinstatement of its securities to the Official
List of the ASX.
-- Reinstatement to the Official List of the ASX is subject to
Aura Energy undertaking and completing agreed upon work programmes
and expenditure commitments on Aura Energy's Projects
-- Shares are currently free trading on London Stock Exchange AIM market
Aura Energy (ASX:AEE, AIM: AURA) is pleased to announce that
further to the announcement of 1 April 2021, the Company has
successfully completed a Rights Issue to eligible shareholders for
1 share for every 2 shares held post consolidation, at a price of
A$0.026 per share, with 1,690 shareholders or 83% of the eligible
registry participating, and all directors taking up their full
entitlement.
Rights Issue
Commenting on the Rights Issue, Aura Energy Non-Executive
Chairman, Martin Rogers, said: "We are very pleased to have
successfully completed the Rights Issue with a strong participation
rate. Importantly, the proceeds from the Rights Issue coupled with
the recent placement have recapitalised the Company, placing Aura
Energy in a strong position to expedite the development of its
zero-emission Tiris Uranium Project and capitalise on the
resurgence in the uranium price, and undertake further exploration
activities on its other Projects".
"I would like to thank shareholders who participated, we have
been blessed by the long-term support and I would like to welcome
some of our new shareholders including Mr. John Hancock, renowned
resource investor Mr. Peter Proksa and Mr. Alex Molyneux former CEO
of Paladin Energy Ltd.
It is currently proposed that the Company will undertake a
loyalty option rights issue one month following its reinstatement
to the Official List of the ASX, which it anticipates to achieve
within the coming months. The options rights issue will likely
consist of 1 option for every 3 Aura Energy shares held, with the
Loyalty Options having an upfront payment of A$0.013 each, an
exercise price of A$0.052, and expiry of 30 June 2024". The loyalty
option rights issue will be offered to eligible Aura Energy
shareholders with a registered address in Australia or New Zealand
on a record date to be determined by the Company and a prospectus
is anticipated to be lodged with ASIC in due course.
"We look forward to an exciting 2021 for Aura Energy, as we fast
track the development of our zero-emission Tiris Uranium Project
and other Projects. As your new Chairman I am here to create value
on behalf of all shareholders and my goal is to have this Tiris
uranium mine operational as soon as practical."
The Company will issue 128,285,974 shares to Rights Issue
participants, with the remaining shares from the Rights Issue fully
underwritten by KTM Capital, with the shortfall being placed to
strategic investors, who will provide long-term support for the
Company as it progresses with the development of its zero emission
Tiris Uranium Project and other Projects.
The Rights Issue is a product of the strategy conceived by some
of the Company's major shareholders to rebuild Aura Energy, as the
Company aims to capitalise on increasing pressure to decarbonise
the global power sector coupled with a resurgence in the uranium
price.
Aura Energy is now focussed on the development and drilling of
the zero-emission Tiris Uranium Project, with the aim of expanding
the existing resources and updating the engineering study for the
Definitive Feasibility Study (DFS).
Reinstatement to the Official List of the ASX
The Company has been liaising with ASX with respect to the
conditions ASX will require the Company to satisfy in order for the
Company to be reinstated to the Official List of the ASX. Following
those discussions, ASX has advised that upon the Company
undertaking sufficient exploration on its projects in line with its
proposed expenditure commitments as set out below, and following
the completion and results of those exploration programs being
released to the market, ASX would be in a position to reinstate
Aura Energy's securities to trading on the Official List. ASX has
advised that the securities issued under the Rights Issue will be
admitted to quotation (whilst noting that the shares will remain in
suspension until the Company's securities are reinstated to trading
on the Official List).
It is currently proposed that the Company will expend
approximately A$1.1m of the funds raised under the Rights Issue as
follows:
Tiris Uranium Project
Resource Information
The uranium mineralisation contains large quantities of
vanadium, but a vanadium resource has never been formally
estimated. Approximately 3,000 existing sample pulps from drilling
in 2011 will be resubmitted for assay for vanadium and a resource
consultant will be engaged to model a vanadium resource
estimate.
At Sadi South, several dozen drill holes containing uranium and
vanadium mineralisation were never included in previous resource
estimates due to timing issues. Therefore, a resource consultant
will be engaged to generate a resource estimate from this zone.
The Company estimates that approximately A$80,000 will be
expended on Vanadium resource assaying and estimation at the Tiris
Uranium Project. Sample pulps are currently being recovered from
storage and are anticipated to be submitted for analysis. Subject
to laboratory capacity to analyse the samples, the resource work
should be completed by Q3 of 2021 and it is anticipated that
resource estimation work at Sadi South will be completed during
this time.
Water drilling
A water drilling program commenced in 2019 at the Tiris Uranium
Project where four holes from a planned program of 10 to 12 holes
were completed before the program ceased for weather related
reasons and did not resume.
Targets identified by ground electrical surveying have already
been defined and as such the Company intends to resume the water
drilling program.
The Company estimates that approximately A$300,000 will be
expended on water drilling at the Tiris Project and expects to
begin water drilling at the Tiris Project as soon as possible and
aim to have the drilling completed by mid-August 2021.
To that end, the Company's water boring contractor is currently
preparing to mobilise and should be on site by mid-June 2021 and
the duration of the drilling will depend on initial results,
however, the initial phase should be completed by mid-August
2021.
Restate the Tiris Feasibility Study for 2021
The initial Feasibility Study for the Tiris Uranium Project was
completed in 2019. In the two years since completion of the initial
Feasibility Study it is anticipated that the cost basis may have
changed and assumptions around currency conversions may no longer
be valid.
To provide a valid basis to assess potential cost reductions in
2021 terms it is recommended that costs inputted in the initial
Feasibility Study be updated and would include (among other
updates):
-- updating material contracting costs from key service providers; and
-- reviewing foreign exchange assumptions (and other material
assumptions) and updating if required.
The initial Feasibility Study cost estimate was undertaken by
Mincore Engineers based in Melbourne. The estimate was completed in
the Quest software package and an update of the estimate should
only involve input of updated costs. Mincore Engineers have
indicated that the process should take approximately 4 weeks, of
which 2 weeks will be required to request and receive updated
quotes and an additional 2 weeks to compile an updated
estimate.
The Company estimates that approximately A$30,000 will be
expended on the revised Tiris Feasibility Study.
Tiris DFS Review
The Tiris Uranium Project represents one of the lowest cost hard
rock uranium development projects globally, however, a number of
opportunities were not included in the original Feasibility Study
that could result in further reduction of costs. It is proposed
that a review of the Feasibility Study be undertaken with the
objective of reducing overall capital and operating costs to make
the development of the project economically viable in the 2021
uranium market.
It is proposed that the review be undertaken by a third-party
engineering company with a well-established reputation in
development and assessment of uranium projects. The review will be
appropriately scoped and defined and a technically capable
engineering consultant is proposed to be engaged during the second
quarter of 2021.
Net zero-emissions study
Further, the Company also will establish a scope of work and
appoint consultants to undertake a net emissions study with respect
to the Tiris Uranium Project and it is anticipated that development
of the study guidelines and battery limits will be completed during
the second quarter of 2021 with the aim to appoint a qualified
consultant shortly thereafter.
Tiris Metallurgical Test work
Development of a test work program for evaluation of vanadium
recovery as a by-product option for the Tiris Uranium Project will
be undertaken with ANSTO Minerals. This will be undertaken as an
extension of Tiris Feasibility test work and will include shipment
of bulk beneficiated samples from Mintek laboratories, South
Africa.
The Company estimates that a total of A$15,000 will be expended
on the metallurgical test work at the Tiris Project and, the
Company estimates to begin the metallurgical test work as soon as
possible and to have it completed by the end of July 2021.
Häggån Vanadium Project
In the second quarter of 2021 a program of work to develop on
metallurgical testing of the Häggån Vanadium Flowsheet examined at
scoping level will be undertaken. The development program will
include definition of test work requirements, assessment of
available drill samples for metallurgical testing and a selection
of a technically capable laboratory specialists to undertake the
work.
The Company estimates that a total of A$60,000 will be expended
on the pre-feasibility study test work development at the Häggån
Project. The Company estimates this pre-feasibility study
preparation will be completed within the third quarter of 2021.
Tasiast South Gold Project
With respect to the Tasiast South Gold Project, the entire area
of greenstones will be surveyed, with three higher priority zones
surveyed at 200m x 200m station spacing, and the remainder at 400m
x 200m. As a result, a total of 6221 stations will be surveyed. The
Company estimates that a total of A$277,000 will be expended on
gravity surveying at the Tasiast South Gold Project.
A geophysical crew from GeoFocus Geophysical Services is
currently preparing to mobilise from southern Africa and is
expected to be on site by mid-June. The field work is estimated to
take approximately 6 weeks and should be complete around mid-July.
This is the high summer in the area and the timing may be
influenced by weather and dust storms.
This release was authorised by the Aura Energy Board of
Directors.
For Further Information, please contact:
Martin Rogers Jane Morgan
Aura Energy Limited JMM
Non-Executive Chairman Investor & Media Relations
martin@ktmcapital.com.au jm@janemorganmanagement.com.au
+61 428 268 357 +61 405 555 618
SP Angel Corporate Finance LLP WH Ireland Limited
(Nominated Advisor and Joint (Joint Broker)
Broker) Adrian Hadden
Ewan Leggat James Sinclair-Ford
Caroline Rowe Telephone: +44 (0) 207 220 1666
Telephone: +44 (0) 203 470 0470
---------------------------------
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ARIDKDBQCBKKBPB
(END) Dow Jones Newswires
May 21, 2021 05:46 ET (09:46 GMT)
Aura Energy (LSE:AURA)
Historical Stock Chart
From Apr 2024 to May 2024
Aura Energy (LSE:AURA)
Historical Stock Chart
From May 2023 to May 2024