Aurora Energy Metals has completed the sale of its Aurora Uranium Project to Eagle Nuclear Energy, receiving A$24.2 million in equity and retaining future milestone-linked payments and royalties.
- Sale of Aurora Uranium Project completed for US$17.1 million in Eagle shares
- Potential additional milestone payments up to US$10 million linked to resource and study milestones
- Aurora retains a 1% net smelter royalty with buyback options
- Aurora now holds a substantial equity stake in Nasdaq-listed Eagle Nuclear Energy
- Transaction strengthens Aurora’s balance sheet with no debt and A$1.5 million cash
Completion of Sale Marks Strategic Shift
Aurora Energy Metals Limited (ASX: 1AE) has officially completed the sale of its Aurora Uranium Project (AUP) to Eagle Nuclear Energy Corp, a company recently listed on the Nasdaq. The transaction, which was first outlined in an option agreement last November, sees Aurora receive US$17.1 million (approximately A$24.2 million) in Eagle shares, positioning Aurora as a significant shareholder in the newly formed nuclear energy entity.
The sale involves the transfer of Oregon Energy LLC, the wholly owned subsidiary holding the AUP, which is recognised as the largest mineable uranium deposit in the United States. This move effectively transitions Aurora from direct project ownership to an equity-based exposure within a Nasdaq-listed company focused on uranium and nuclear energy development.
Milestone Payments and Royalty Retention
Beyond the initial equity consideration, Aurora stands to gain up to an additional US$10 million in milestone payments, contingent on the advancement of the Aurora Uranium Project. These payments are linked to key technical achievements, including resource upgrades and the delivery of a positive pre-feasibility study. If fully realised, this could add roughly A$0.079 per Aurora share in value.
Importantly, Aurora retains a 1% net smelter royalty on the project, with Eagle having the option to buy back half or the entirety of this royalty for US$1 million or US$2 million respectively. This royalty provides Aurora with ongoing exposure to the project’s future production without the operational responsibilities.
Financial and Strategic Implications
The transaction materially strengthens Aurora’s financial position. With no debt and a cash balance of A$1.5 million as of December 31, 2025, the company is well placed to focus on its portfolio of exploration assets in Western Australia. The equity stake in Eagle Nuclear Energy offers Aurora shareholders exposure to a Nasdaq-listed uranium company, potentially enhancing liquidity and market visibility.
This strategic repositioning allows Aurora to leverage the growth potential of the Aurora Uranium Project indirectly while pursuing new opportunities in its home jurisdiction. The deal also reflects broader market interest in uranium as a critical energy resource amid the global energy transition.
Looking Ahead
As Eagle Nuclear Energy begins trading on the Nasdaq, investors will be watching closely to see how the Aurora Uranium Project progresses under its stewardship. Aurora’s retained royalties and milestone-linked equity provide a balanced approach to risk and reward, maintaining upside potential while reducing direct operational exposure.
Bottom Line?
Aurora’s pivot to equity exposure and royalties sets the stage for a new chapter focused on growth and strategic flexibility.
Questions in the middle?
- How will Eagle Nuclear Energy’s share price performance affect the realised value for Aurora shareholders?
- What are the timelines and likelihood of achieving the milestone payments tied to resource upgrades and feasibility studies?
- Will Aurora pursue further acquisitions or partnerships to complement its Western Australian exploration portfolio?