Aurora Energy Metals Secures A$24.2M in Eagle Shares, Retains Upside on Uranium Project Sale

Major Uranium Project Sale Finalised with Equity Consideration

Aurora Energy Metals (ASX:1AE) has completed the sale of its Aurora Uranium Project (AUP) to Nasdaq-listed Eagle Nuclear Energy Corp (NASDAQ: NUCL), receiving approximately US$17.1 million (A$24.2 million) in Eagle shares. The transaction, finalised following Eagle's business combination with Spring Valley Acquisition Corp. II, transfers ownership of the Oregon-based project while leaving Aurora with significant exposure to future gains.

Under the deal, Aurora received 1.6 million Eagle shares at US$10 each, plus nearly 111,000 bonus shares reflecting uranium price appreciation. These shares are subject to a six-month escrow, limiting immediate liquidity until late August 2026. In addition, Aurora retains a 1% Net Smelter Royalty (NSR) with standard buyback rights, securing long-term production upside.

Milestone Payments and Eagle's Drilling Program Signal Potential Upside

Crucially, Aurora holds rights to up to US$10 million in further milestone payments tied to project advancement milestones: US$5 million upon converting at least 40 million pounds of uranium oxide resources into a compliant S-K 1300 measured and indicated resource, and another US$5 million upon delivery of a positive Pre-Feasibility Study (PFS). These milestones hinge on Eagle’s upcoming activities.

Following quarter-end, Eagle announced a substantial ~27,000-foot drilling campaign at the Aurora Uranium Project, including around 47 diamond drill holes scheduled to start mid-2026. The program aims to expand and upgrade resource classifications, conduct metallurgical and geotechnical studies, and generate critical data for the PFS targeted for completion in 2027. This aligns directly with Aurora’s deferred consideration triggers, potentially unlocking the milestone payments.

The transaction leaves Aurora with a strategic stake in a Nasdaq-listed uranium company, exposure to future equity appreciation, and a royalty stream, while bolstering its balance sheet with a combined cash and listed investment position of approximately A$28 million, equivalent to about 16 cents per share.

Leadership Transition and Focus on Western Australian Exploration

Amid this transition, Aurora appointed Aidan Platel as Managing Director and CEO, with Warren Hallam stepping in as Non-Executive Chair following Peter Lester’s retirement. These leadership changes, discussed in detail in Aurora’s earlier announcement on board reshapes leadership, position the company for its next growth phase beyond the uranium divestment.

Meanwhile, Aurora continues to advance its Western Australian exploration portfolio, which comprises early-stage uranium targets identified through airborne radiometric surveys. This low-cost entry into prospective uranium systems complements the company’s broader strategic review of potential growth opportunities.

As of 31 March 2026, Aurora held $1.3 million in cash with no debt, underscoring a conservative financial position post-sale. The company’s quarterly expenditure remained modest, with exploration and evaluation costs at $25,000, reflecting its pivot from active uranium project development to strategic investment and exploration.