Aura Energy has locked in a landmark long-term uranium offtake agreement with a major US nuclear utility alongside a flexible spot sales deal, marking a pivotal step toward commercialising its Tiris Uranium Project in Mauritania.
- Long-term offtake agreement with Fortune 500 US nuclear utility
- Contract covers ~10% of Tiris uranium output over 2028–2031
- Spot sales agreement with leading global uranium trading group
- Both counterparties hold investment grade credit ratings
- Agreements contingent on project financing and Final Investment Decision by end-2025
Strategic Sales Agreements Mark Milestone
Aura Energy Limited has announced two significant uranium sales agreements that advance the commercial prospects of its Tiris Uranium Project in Mauritania. The company secured a long-term offtake agreement with a major US-based nuclear utility, alongside a master spot sales agreement with a leading global uranium trading group. These deals represent a critical validation of Tiris’s potential as a future uranium supplier to the global nuclear energy sector.
Details of the Offtake Agreement
The long-term offtake agreement is Aura’s first with a nuclear power utility, a Fortune 500 company with an investment grade credit rating. It covers approximately 10% of Tiris’s projected uranium oxide concentrate production over a four-year period from 2028 to 2031. Pricing is structured within a collar that sits comfortably above Aura’s forecast production costs, providing a degree of revenue certainty. However, this agreement remains conditional on Aura securing project financing and making a Final Investment Decision (FID) by the end of 2025.
Spot Sales Agreement Adds Flexibility
Complementing the offtake deal, the spot sales agreement offers Aura the flexibility to sell uranium oxide concentrate on the spot market without long-term commitments. Deliveries can be made to conversion facilities in France, Canada, and the US. The counterparty is a globally integrated uranium trading group, also with an investment grade rating, enabling Aura to capitalise on favourable market conditions and optimise revenues from short-term sales opportunities.
Implications for Project Financing and Development
These agreements are strategically important as they underpin Aura’s efforts to secure project financing and move towards production. The offtake contract’s minimum pricing mechanism is likely to be a key condition for future debt arrangements, while the spot sales agreement enhances Aura’s ability to respond dynamically to market shifts. Despite this progress, the company cautions that the agreements cover only a fraction of total production and that full project value realisation depends on financing and FID milestones.
Looking Ahead
Managing Director Andrew Grove emphasised the significance of these deals in reinforcing Tiris’s credibility and Aura’s strategic goal of becoming a reliable uranium supplier. With first production still estimated at 18 to 20 months post-FID, the company is focused on advancing financing discussions and delivering further milestones towards commercialisation. Investors will be watching closely as Aura navigates these critical next steps.
Bottom Line?
Aura’s new agreements mark a crucial step forward, but financing and final investment decisions remain the key hurdles ahead.
Questions in the middle?
- Will Aura secure the necessary project financing and make a Final Investment Decision by year-end?
- How will uranium market dynamics influence the value and volume of spot sales?
- What are the prospects for expanding offtake agreements beyond the initial 10% production volume?