ASX- and Aim-listed Aura Energy has received firm commitments from investors to raise about A$16.2-million through the issue of 90.2-million ordinary shares.
The company will also offer shareholders the opportunity to participate in a share purchase plan (SPP) of up to A$2-million through the issue of about 11.1-million shares, subject to shareholder approval at a general meeting on April 26.
The eligible shareholders for the SPP are those residing in Australia, the UK or New Zealand with existing shares in the company as of March 15.
Notably, Aura MD and CEO Andrew Grove intends to invest A$100 000 as part of the placement.
Participants in the placement and SPP will also receive three new options for every four shares subscribed to. The new options will be listed at an exercise price of A$0.30 and have an expiry period of two years.
Aura will use the proceeds for pre-development activities at the Tiris uranium project, in Mauritania, leading up to a final investment decision before the end of the year.
Should the project proceed, the company expects to start production in 2026.
The remainder of proceeds will support development of the Häggån project, in Sweden, as well as provide working capital.
The Tirus project is envisioned to be a two-million-pound-a-year triuranium octoxide operation, with a 17-year mine life, while the Häggån deposit contains a 2.5-billion-tonne vanadium, sulphate of potash and uranium resource. Based on mining 3.5-million tonnes a year, using only 3% of this resource, the project could have a 27-year mine life.