Aura Energy has attracted a C$10 million investment from MMCAP and strategic partners, valuing its Swedish Häggån polymetallic project at C$50 million and spinning it into a new Canadian-listed entity.
- C$10 million funding for 19.7% stake in Häggån project
- Häggån project valued at C$50 million (A$55 million)
- Creation of SIU Metals Corp. to hold Häggån, with Aura retaining 78.7%
- SIU Metals to pursue TSX Venture Exchange listing via reverse takeover
- Swedish uranium mining legislation change enhances project potential
Strategic Investment and Valuation Milestone
Aura Energy Limited (ASX, AEE) has taken a significant step in advancing its polymetallic Häggån project in Sweden by securing a C$10 million investment from MMCAP International Inc. SPC and other strategic investors. This injection establishes a clear valuation of C$50 million for the project, underscoring its growing appeal amid evolving market and regulatory conditions.
The funding deal involves transferring 100% ownership of Häggån to a newly formed Canadian public company, SIU Metals Corp., in exchange for shares. Aura will maintain a controlling 78.7% stake in SIU Metals, ensuring ongoing exposure to the project's future upside while welcoming new partners to accelerate development.
Corporate Restructuring and Market Listing
SIU Metals plans to list on the TSX Venture Exchange (TSXV) through a reverse takeover (RTO) expected to complete by June 2026. This move aims to provide the Häggån project with increased visibility and a valuation benchmark against comparable public companies in the region. The financing round, led by MDCP Securities Ltd., includes subscription receipts convertible into shares and warrants, providing investors with potential upside participation.
The transaction is structured to support the advancement of Häggån’s permitting process, resource expansion through exploration, and general corporate purposes. Aura will also appoint experienced officers and directors to SIU Metals, ensuring strong governance aligned with Canadian regulatory standards.
Regulatory Tailwinds and Project Potential
A pivotal development underpinning this transaction is the recent amendment to Sweden’s Minerals Act, effective 1 January 2026, which now permits uranium exploration and extraction. This legislative change significantly enhances Häggån’s strategic value, given its polymetallic nature that includes uranium alongside vanadium and sulphate of potash.
Phil Mitchell, Aura’s Executive Chairman, highlighted the calibre of the new investors and the opportunity to unlock Häggån’s under-recognised potential. He emphasised that Aura’s shareholders would continue to benefit from the project’s growth prospects through their substantial ownership in SIU Metals.
Looking Ahead
The financing is expected to close in February 2026, with the RTO and TSXV listing following mid-year, subject to regulatory and shareholder approvals. Aura’s strategic repositioning of Häggån into a dedicated Canadian-listed vehicle reflects a broader trend of mining companies seeking capital and market recognition in North American exchanges, especially for projects with uranium exposure amid a tightening global supply outlook.
As Aura advances its dual uranium projects; Häggån in Sweden and Tiris in Mauritania; the company is positioning itself to capitalise on the growing demand for nuclear fuel driven by global decarbonisation efforts. The Häggån transaction marks a critical milestone in this journey, blending regulatory progress, strategic investment, and market access.
Bottom Line?
Aura’s Häggån project steps into the spotlight with fresh capital and a Canadian listing, setting the stage for accelerated growth amid shifting uranium market dynamics.
Questions in the middle?
- Will SIU Metals successfully secure TSXV listing and meet all regulatory conditions?
- How will the recent Swedish uranium mining legislation impact Häggån’s development timeline and economics?
- What exploration results and resource updates can investors expect from Häggån post-financing?