TIDMAURA
RNS Number : 0940T
Aura Energy Limited
22 November 2021
22 November 2021
Strategic Board Restructure - Uranium Production
KEY POINTS:
-- Aura Energy's 2021 AGM is set to allow for a strategic
transformational board restructure to advance Aura from a uranium
explorer to a uranium producer
-- Mining M&A heavyweight Mr. Phil Mitchell to be elected at
the AGM as Aura's Independent Non-Executive Chairman, with
significant experience having held senior roles with global mining
companies Rio Tinto, Anglo American and heading acquisitions for
billionaire Robert Friedland's company, High Power Exploration
-- Mr. Warren Mundine to be elected at the AGM as Independent
Non-Executive Director. Mr Mundine is one of Australia's prominent
independent thinkers and a thought leader in the mining sector and
nuclear power space as former director of the Australian Uranium
Association
-- Mr. Bryan Dixon to be elected at the AGM as Independent
Non-Executive Director, contributing significant experience as a
Chartered Accountant building junior exploration companies into
producers, with over 20 years in the mining sector.
-- With Aura now preparing for production at the low capex, low
operating cost Tiris Uranium Project, this new team will lead the
development path to production and capitalise on the high growth
demand for nuclear power and carbon free energy[1].
-- Mr. Peter Reeve to transition from MD & CEO of Aura to
CEO of the Company's 100% owned gold subsidiary, Archaean
Greenstone Gold Pty Ltd. Mr Reeve will drive a proposed spin-out
and listing process of Archaean on the ASX in 2022 with a planned
in-species distribution to Aura shareholders (subject to future
shareholder and ASX approval).
Aura Energy Limited (ASX:AEE, AIM:AURA) ("Aura", the "Company")
is pleased to announce that with Aura now preparing for production
at the low capex, low operating cost Tiris Uranium Project
("Tiris", "Project"), the Company will undergo strategic changes to
focus on uranium, and the high growth demand for nuclear power and
carbon free energy at the upcoming AGM.
The proposed strategic changes are for the new board members,
Mr. Phil Mitchell as independent Chairman, and Mr Warren Mundine
and Mr. Bryan Dixon as independent non-executive directors to be
elected at the AGM, subject to shareholder approval and completion
of due diligence by the Company's nominated adviser. Mr. Martin
Rogers, Mr Peter Ward and Mr. Peter Reeve will step down from the
board following the AGM. This new board will run a process to
appoint a new CEO of Aura within the next six months with the right
skill sets to take the Tiris uranium project into production.
The Company's AGM will be held at 10 am AEDT on 21 December
2021, full details of which can be viewed here:
http://www.rns-pdf.londonstockexchange.com/rns/0940T_1-2021-11-22.pdf
.
During 2021, Aura has significantly advanced the Tiris Uranium
Project, with a resource upgrade of 10% or 5.0 million lb U(3) O(8)
bringing the total JORC Resource to 56 Mlbs [2] , completed an
updated capital estimate and DFS to reflect 2021 input costs[3],
and entered a US$10m Offtake Financing Agreement with Curzon (the
Agreement includes an additional up to US$10m facility by mutual
consent), complementing the Uranium Offtake Agreement executed with
Curzon in January 2019[4].
To view Figure 1 - Aura is prepared for production at the Tiris
Uranium Project, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/0940T_2-2021-11-22.pdf
With rapidly growing demand for uranium and nuclear energy
driven by the shift towards a decarbonised energy system, Aura's
new Board will apply its significant experience to fast track Tiris
to near term production, with the new appointments outlined in the
announcement below.
Aligned with Aura's strategic focus on uranium, the Company has
proposed that its gold subsidiary, Archaean Greenstone Gold, will
be spun out and listed on the ASX in 2022, with a planned
in-species distribution to Aura shareholders. This transaction will
be subject to shareholder and ASX approval at extraordinary general
meeting (EGM) planned for early 2022. More information on this will
follow in due course.
Mr. Phil Mitchell to be elected as Non-Executive Chairman
Phil Mitchell to be elected as independent Non-Executive
Chairman, with significant experience in mining M&A having held
former roles as Head of Business Development and Strategy at Rio
Tinto, CFO of Rio Tinto Iron Ore, member of the Executive Committee
at Anglo American, and also headed acquisitions for billionaire
Robert Friedland's company, High Power Exploration.
As Head of Business Development and Strategy at Rio Tinto, he
was responsible for managing all aspects of the company's asset and
commodity portfolio, including the Ranger uranium mine in addition
to the strategic positioning of the company. Mr Mitchell was also
accountable for the M&A portfolio and divestments, in addition
to the daily management of the BHP takeover proposal.
As the Chief Financial Officer of Rio Tinto's iron ore business,
one of the largest Australian business units, he oversaw all
commercial aspects of the business including relationships with all
JV partners and government. He was also responsible for developing
the strategic plan that saw Rio Tinto Iron Ore dominate profitable
expansion to support China's growth.
Most recently, Mr Mitchell lead the acquisition of the Nimba
Iron Ore project for Robert Friedland's High Power Exploration
(HPX) including the purchase arrangements with BHP, Newmont and
Orano, and the negotiation of the agreements with the Governments
of Guinea and Liberia.
Proposed Non-Executive Chairman, Mr. Phil Mitchell, commented:
"I look forward to being appointed as Non-Executive Chairman of
Aura Energy. With my vast experience in being involved in large
scale mining operations, I believe that I hold both the industry
knowledge and contacts, to commence production at Tiris in the near
term."
Mr. Warren Mundine to be elected as Non-Executive Director
Warren Mundine to be elected as independent Non-Executive
Director. Mr Mundine is one of Australia's prominent independent
thinkers and a thought leader in the mining sector and nuclear
power space. Mr Mundine has worked on numerous major resource
projects for leading companies including Fortescue Metals Group,
Rio Tinto, BHP and AGL Pipelines & Engineering Waanyi Downer
Joint Venture.
Mr Mundine is a former director of Australian Uranium
Association.
He currently the Managing Director and CEO of Nyungga Black
Group Pty Ltd, advisory consultancy, which holds controlling
interest in several companies across a diverse range of industries
including mining resource consulting.
He has formerly worked as a host of Sky News and Win Television,
and is currently a director of Australian Government owned
television station, Special Broadcasting Services (SBS).
Proposed Non-Executive Director, Warren Mundine, commented: "As
a long-term supporter of nuclear energy and carbon free power, I
look forward to joining the Board of Aura Energy. I look forward to
contributing strategic value to the Company as it transitions to
the production stage of its lifecycle."
Mr. Bryan Dixon to be elected as Non-Executive Director
Bryan Dixon to be elected as independent Non-Executive Director.
Mr Dixon contributes significant experience to the resource sector,
as a Chartered Accountant building junior exploration companies
into mining producers with over 20 years in the mining sector. He
also holds extensive experience in the management of public and
listed companies, and joint winner of the Mines and Money
Asia-Pacific Mining Executive of the Year in 2017.
Mr Dixon has held a numerous director and management roles with
emerging resource companies, and was the founding Managing Director
of Blackham Resources (ASX:BLK), now Wiluna Mining Corporation
(ASX:WMC).
Previously, Mr Dixon was employed by an international accounting
firm, Resolute Limited and Archipelago Resources, and specialises
in project acquisition, exploration, feasibility, financing,
development, and operations of mining projects to production.
Proposed Non-Executive Director , Bryan Dixon , commented: "I am
excited to be joining the Board of Aura at critical stage, as the
world continues to transition toward a decarbonised energy system.
I believe I can contribute significant value to the Company through
my broad experience at both Board and management level of emerging
resource companies."
Commenting on the Board restructure, Chairman, Martin Rogers,
said:
"Today the Company is pleased to announce strategic changes to
focus on uranium, and the high growth demand for nuclear power and
carbon free energy."
"Aura has always been a magnificent uranium project that is now
ready to set sail. The uranium market has switched from bear to
bull market, it is now time to start preparing for production at
Aura's Tiris uranium project.
"The new proposed Board of directors, have been strategically
chosen with a strong focus on production. With their extensive
industry experience and contacts, by entering further offtake and
financing agreements, the Company will be able to commence
production at Tiris in the near term, thereby creating further
value for Aura shareholders, as the Company continues to capitalise
on the rapidly growing demand for nuclear."
"Aligning with Aura's strategic focus on uranium, the Company
has proposed, subject to future shareholder and ASX approval, that
its wholly owned gold subsidiary, Archaean Greenstone Gold Pty Ltd,
be spun out and listed on the ASX via an IPO in 2022, with an
in-species distribution to Aura shareholders."
"Peter Reeve has been instrumental in preparing Tiris for
production and will now focus on applying his strong abilities in
advancing exploration at the highly prospective Tasiast South Gold
Project, which is 36 km south of Kinross 20 Moz Tasiast Gold Mine
([5]) . The proposed spin out presents a significant opportunity
for Aura."
"The team of Peter Reeve, Neil Clifford, Sid Ahmed and Will
Goodard deserve credit for shepherding the project through tough
times in the uranium bear market."
"I would like to thank shareholders for their support in seminal
year of 2021 and I am honoured to be passing the baton onto mining
industry heavyweight Phillip Mitchell. 2022 is indeed setting up as
an exciting time for shareholders."
This ASX Release was authorised by the Aura Energy Board of
Directors.
For Further Information, please contact:
Martin Rogers Jane Morgan
Chairman JMM
Aura Energy Limited Investor & Media Relations
info@auraenergy.com.au jm@janemorganmanagement.com.au
+61 405 555 618
SP Angel Corporate Finance LLP WH Ireland Limited
(Nominated Advisor and Joint (Joint Broker)
Broker) Adrian Hadden
Ewan Leggat Andrew de Andrade
Caroline Rowe Telephone: +44 (0) 207 220 1666
Telephone: +44 (0) 203 470 0470
About Aura Energy (ASX:AEE, AIM:AURA)
Aura Energy is an Australian based minerals company that has
major polymetallic and uranium projects with large resources in
Europe and Africa. The company has rapidly grown by acquiring new
projects in areas with known polymetallic and uranium occurrences
including Sweden and greenfield projects in Mauritania
The Company is now focused on the Tiris Uranium Project, a major
greenfields uranium discovery in Mauritania, with 49 Mlb U (3) 0
(8) in current resources from 66 million tonnes @ 334 ppm U (3) 0
(8) .
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.
Notes to Project Description
The Company confirms that the material assumptions underpinning
the Tiris Uranium Production Target and the associated financial
information derived from the Tiris production target as outlined in
the Aura Energy release dated 18 August 2021 for the Tiris Uranium
Project Definitive Feasibility Study continue to apply and have not
materially changed.
The Tiris Uranium Project Resource was released on 27 August
2021 "Resource Upgrade of 10% - Tiris Uranium Project". The Company
confirms that it is not aware of any new information or data that
materially affects the information included in the relevant market
announcement and that all material assumptions and technical
parameters underpinning the estimates in the relevant market
announcements continue to apply and have not materially
changed.
In respect to Resource statements there is a low level of
geological confidence associated with inferred mineral resource and
there is no certainty that further exploration work will result in
the determination of indicated measured resource or that the
production target will be realised.
Disclaimer Regarding Forward Looking Statements
This ASX announcement (Announcement) contains various
forward-looking statements. All statements other than statements of
historical fact are forward-looking statements. Forward-looking
statements are inherently subject to uncertainties in that they may
be affected by a variety of known and unknown risks, variables and
factors which could cause actual values or results, performance or
achievements to differ materially from the expectations described
in such forward-looking statements. The Company does not give any
assurance that the anticipated results, performance or achievements
expressed or implied in those forward-looking statements will be
achieved.
Annexure A - Tiris Resource Inventory as at 27 August 2021
[6]
Cut-off Resource Class Tonnes U (3) O U (3) O U (3) O
U (3) O Zone (Mt) (8) (g/t) (8) (Mkg) (8) (Mlb)
(8) g/t
-------- --------- ------ ---------- ---------- ----------
100 All Measured 10.2 236 2.4 5.3
-------- --------- ------ ---------- ---------- ----------
100 All Indicated 29.0 222 6.4 14.2
-------- --------- ------ ---------- ---------- ----------
100 All Total M&I 39.2 226 8.8 19.5
-------- --------- ------ ---------- ---------- ----------
100 All Inferred 61.1 267 16.3 36.0
-------- --------- ------ ---------- ---------- ----------
100 All All 100.3 254 25.2 55.5
-------- --------- ------ ---------- ---------- ----------
Note: Totals may not add due to rounding.
[1] Uranium emerges from the shadows, https://www.resourcesrisingstars.com.au/news-article/uranium-emerges-shadows , published 29 January 2021
[2] Released 27 August 2021
[3] Released 18 August 2021
[4] Released 7 October 2021
[5] +20 Moz is an estimate of Tasiast's gold "endowment", i.e.
current resources plus gold previously mined. Kinross's published
Tasiast resource at December 2011 was 20.5 million ounces at 1.2
g/t gold based on cut-off grades of 0.6 g/t gold for CIL ore, 0.25
g/t Au for heap leach ore and 0.1 g/t Au for dump leach ore.
[6] Released 27 August 2021 " Tiris Uranium Project - Resource
Upgrade of 10% "
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