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Aura Energy: Significant new development in the Haggan Funding Strategy

Contributed by Fox-Davies Capital

Following the completion of the first stage of its strategic review, Aura Energy the a potential strategic partnership for the Haggan uranium and polymetallic project in Sweden. Subsequently, an unsolicited proposal has been received from a second potential partner, which the Board has assessed to be superior to the first proposal. The second party is also a major uranium market participant.

This is extremely positive news for Aura, although it must be pointed out that the discussions are at an early stage and there can be no assurance that a binding agreement will be executed. Consistent with the fiduciary carve-out contained in the original Exclusivity Agreement, the Board now intends to engage with the second participant in relation to the New Proposal.

A new 90 day Exclusivity Agreement has been entered into with the second party, during which the parties will attend to outstanding due diligence and negotiation of definitive documentation in relation to the New Proposal. If agreed, under the New Proposal the Strategic Partner would make an initial provide funding for further feasibility work at Haggan, in return for equity in the project in two phases.