An interesting development for ASX: AEE the owners of the world’s 3rd largest undeveloped uranium resource. Having worked out their flow sheet etc AEE needed a big brother to take them into development….Yesterday’s announcement not only shows that they will have little trouble going forwards re funding but in my opinion that uranium is again becoming a sort after resource.
Significant new development in the Häggån Funding Strategy
29 October 2012
Aura has received a second, superior offer from a global miner
As announced to ASX on 14 August 2012, following completion of the first stage of its strategic review, Aura Energy (ASX:AEE) signed an Exclusivity Agreement with a major uranium market participant, in respect of a potential strategic partnership for the Häggån uranium and polymetallic project in Sweden.
Subsequently, an unsolicited proposal was received from a second potential partner (“New Proposal”), which the Board has assessed to be superior to the first proposal. The second party is also a major uranium market participant.
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 cash payment to Aura on formation of the Strategic Partnership, and would provide funding for further feasibility work at Häggån, in return for equity in the project in two phases.
It should be stressed that discussions remain at any early stage and there can be no assurance that a binding agreement will be executed. Aura will provide further updates on the process in due course. In the meantime, Aura remains focused on advancing its suite of uranium assets in Sweden and Mauritania.