JOHANNESBURG (miningweekly.com) – ASX-listed Areva Mines would not proceed with a proposed partnership with ASX-listed Aura Energy to develop the Häggån uranium and polymetallic project.
The companies parted ways on Friday following the conclusion of Areva’s due diligence on the Sweden-based project.
No reasons were given for Areva’s decision not to proceed with the partnership.
Aura and Areva entered into a binding cooperation agreement in February, after Aura received an unsolicited proposal from Areva in August.
Aura, however, was “strongly encouraged” by Areva’s endorsement of the technical strength of the project.
The Häggån project, which covered an area of 110 km2 in the Storsjön district, held a Joint Ore Reserves Committee-compliant inferred resource of 800-million pounds of uranium oxide.
“The Häggån project remains the second-largest undeveloped uranium deposit in the world with an inferred resource of 803-million pounds of uranium and a number of coproducts, including nickel, zinc and molybdenum,” said Aura MD Dr Bob Beeson.
Aura maintained that the Häggån project was a strategic asset that had the potential to provide long-term uranium supply to Sweden, which generated 50% of its electricity requirements from nuclear power, and the rest of the European Union.
Beeson stated that the group would continue to seek opportunities to increase shareholder value.