Aurora Energy Metals’ Uranium Recovery Surges Above 85%, Eyes US$26M Deal

Strategic Partnership with Eagle Energy Metals

Aurora Energy Metals Limited (ASX:1AE) has taken a significant step forward in advancing its flagship Aurora Uranium Project (AUP) through an Option Agreement with US-based Eagle Energy Metals. This deal, approved overwhelmingly by shareholders in January 2025, positions Eagle to acquire the project with Aurora receiving up to US$26 million in share consideration, alongside milestone payments tied to resource upgrades and feasibility achievements.

Crucially, Aurora will retain approximately a 40% equity interest in Eagle Energy Metals upon its anticipated US stock exchange listing, ensuring ongoing exposure to the project's development and potential upside. The transaction also includes a 1% net smelter royalty (NSR), with Eagle having the option to buy back the royalty, further aligning incentives.

Enhanced Uranium Recovery and Project Optimisation

Complementing the strategic sale, Aurora has reported substantial progress in metallurgical test work for the AUP. Recent results demonstrate uranium recovery rates exceeding 85%, a marked improvement from the 69% recovery rate used in the 2024 Scoping Study. These gains stem from optimised atmospheric leach circuits and increased acid additions, with recoveries reaching as high as 89% in some fractions.

While acid consumption remains a factor requiring further refinement, ongoing test work aims to balance recovery efficiency with processing costs. The outcomes will feed into an Optimised Scoping Study scheduled for release later in 2025, potentially enhancing the project's economic profile ahead of feasibility and permitting milestones.

Expansion into Western Australian Uranium Exploration

In parallel with its US project developments, Aurora has secured an Option Agreement to acquire Metalbelt Holdings Pty Ltd, which holds a portfolio of uranium exploration tenements in Western Australia. These tenements, identified through regional geophysical surveys, contain promising uranium anomalies across multiple projects including Ucarty, Bulagin, Kondinin, Lake Harvey, Harris Lake, and Mudjalla.

Despite the current uranium mining ban in Western Australia, Aurora views this as a low-risk opportunity to diversify and build a prospective pipeline aligned with the growing global momentum for uranium as a critical energy mineral. Initial exploration activities will focus on landholder engagement and surface inspections to prioritise targets for follow-up work.

Strengthening Leadership and Financial Position

Aurora has bolstered its leadership team with the appointment of Warren Hallam as a Non-Executive Director. Hallam brings over 35 years of mining and critical commodities experience, including senior roles in ASX-200 resource companies, providing valuable expertise as Aurora navigates this pivotal phase.

Financially, the company reported a cash position of $0.9 million at the end of December 2024 with no debt. The receipt of a US$300,000 option payment from Eagle post-shareholder approval adds to the company's liquidity as it collaborates with Eagle on their US listing and continues its metallurgical and exploration programs.

Looking Ahead

In the coming quarter, Aurora plans to work closely with Eagle Energy Metals to facilitate the latter's US stock exchange listing and satisfy option agreement conditions. Further metallurgical testing will aim to optimise reagent usage and recovery rates, while exploration on the Western Australian tenements will commence with ground reconnaissance and spectrometer surveys.

This multi-pronged approach positions Aurora to capitalise on both the US uranium market's favourable dynamics and emerging opportunities in Australia, maintaining a balanced exposure to critical mineral assets across jurisdictions.