Aura strikes offtake deal for Tiris
PERTH (miningweekly.com) – ASX- and Aim-listed Aura Energy has entered into a $10-million offtake financing agreement with Curzon Uranium Trading at its Tiris uranium project, in Mauritania.
Aura told shareholders on Thursday that the funds would be used for working capital for late stage project construction and to allow for production to start.
The offtake financing agreement comprises a variation of an offtake agreement struck with Curzon in early 2019, along with a new financing agreement. The variation of the existing offtake agreement extends the terms to include a production start date in 2024.
The original offtake agreement provided for the sale of 800 000 lb of uranium oxide (U3O8) at fixed prices, with 750 000 lb at market linked pricing and a further 10.5-million pounds of production available to Curzon as optional volumes at fixed and market pricing, with the average price above $44/lb U3O8.
The offtake agreement spans a seven-year period from the date of first production.
“We are delighted to have entered the offtake financing agreement with Curzon, as this perfectly positions Aura Energy with a low capital cost and low operating cost project, financing agreement and offtake agreement to rapidly progress Tiris Uranium into production,” said Aura chairperson Martin Rogers.
“Sentiment towards uranium and nuclear power is shifting rapidly amongst investors and we see considerable potential to expand our resource, production throughput and undertake further offtake finance agreements.
“The implications of a potential doubling in electricity demand over the next three decades, along with pressure to decarbonise our power sector could prove huge for uranium.”
An updated definitive feasibility study for the Tiris project estimated a capital cost of $74.8-million to produce 12.4-million pounds of U3O8 over a 15-year period, at an annual rate of 823 000 lb, based on a maiden ore reserve of 10.9-million tonnes, at 336 parts per million U3O8.
The project is expected to generate an after-tax cash flow of $214-million, and will have an internal rate of return of 22%.
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