Aura Energy Raises A$20M via 97.56M Shares at A$0.205 Each

Capital Raise Completion

Aura Energy Limited (ASX, AEE) has confirmed the completion of a significant capital raise, issuing nearly 98 million new shares to institutional and sophisticated investors. The placement, priced at A$0.205 per share, has generated A$20 million before costs, bolstering the company’s financial position as it advances its key projects. Additionally, Aura issued 2 million shares under a service agreement milestone, reflecting progress on contractual commitments.

Strategic Use of Placement Capacity

The company utilised its existing placement capacity under ASX Listing Rules 7.1 and 7.1A, allowing the share issuance without the need for further disclosure or shareholder approval. This streamlined approach indicates Aura’s intent to move swiftly in securing funds to support ongoing development activities, particularly as it navigates complex negotiations with stakeholders.

Ongoing Contract Negotiations

While the capital raise provides a financial boost, Aura remains engaged in confidential discussions with government bodies, potential contract partners, and communities. These talks focus on ensuring the continuity and effectiveness of its offtake contract, a critical element for future revenue streams. However, the company cautions that these negotiations are incomplete, with no binding agreements yet in place, underscoring the uncertainty ahead.

Project Development Outlook

Aura is progressing two major projects, the Tiris Uranium Project in Mauritania, which is fully permitted and poised for near-term development, and the Häggån Polymetallic Project in Sweden, notable for its vanadium, potash, and uranium deposits. The Tiris project is undergoing basic engineering work expected to conclude by mid-2026, potentially impacting project economics and timelines. These assets position Aura to capitalise on the growing demand for cleaner energy metals amid global decarbonisation efforts.

Market Implications and Next Steps

Investors will be watching closely as Aura navigates the delicate balance between securing funding and finalising critical contracts. The successful placement provides a runway for continued development, but the absence of binding agreements on offtake arrangements introduces an element of risk. Aura’s ability to convert ongoing discussions into firm contracts will be pivotal in shaping its near-term trajectory and market confidence.