Uranium at the Tiris project
Aim- and ASX-listed Aura Energy and uranium trader and investor Curzon Uranium have agreed to restructure their uranium offtake agreement, materially increasing the price receivable for planned uranium production and releasing significant value for Aura’s Tiris uranium project, in Mauritania.
The average fixed-price contract price increases by 70% to $74.75/lb of uranium ore concentrate (U3O8) from $44.09/lb of U3O8, subject to a final investment decision being made by March 31, 2025.
The total contracted volumes under fixed- and variable-priced contracts will reduce from 2.6-million pounds to 2.1-million pounds over the same seven-year term, starting from beginning of production.
An additional $41-million in revenue will be delivered to the Tiris project cash flows at a uranium price of $80/lb of U3O8.
The project’s net present value increases by $22-million to $388-million and the internal rate of return improves by 34% to 36%, compared with the front-end engineering design study economics announced in March.
The restructured offtake is set to deliver 150 000 lb/y of U3O8 under fixed-price terms averaging $74.75/lb U3O8 and 150 000 lb/y of U3O8 at spot price less 4% discount over seven years.
A restructuring fee of $3.5-million is to be paid to Curzon either in cash or in Aura shares priced at A$0.18 apiece.
Curzon is also set to take a $3.5-million placement of Aura shares at A$0.18 apiece.
The shares are subject to escrow arrangements.
The placement and settlement will take place at the conclusion of final documentation and subject to Aura’s placement capacity being refreshed at the upcoming shareholders’ meeting.
“We are very pleased with the cooperation and consideration received from Curzon – a leading global trader in uranium – on this restructured offtake agreement and welcome Curzon as an important partner and Aura shareholder for the development of the Tiris uranium project which will have significant mutual benefits for both parties.
“The restructured offtake agreement releases significant value in the project and is another important step in the development of the Tiris uranium project,” Aura CEO and MD Andrew Grove says.