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Aura Energy doubles on bet it's next Berkeley Energia

Last updated: 00:45 13 Sep 2016 AEST, First published: 17:36 09 Sep 2016 AEST

nuclear power such Aura's
The rise of nuclear power will require uranium supplied from projects such Aura's.

Shares in Australia-listed Aura Energy Ltd (ASX:AEE, LON:AURA) shot up more than 100% after it took its bow on the AIM market on Monday after raising £2.24mln from London investors.

Aura Energy shares changed hands as high as 2.7p on Monday.

Shares in the uranium-focused mining junior were placed with institutions and sophisticated high net worth investors at 1.14p.

The cash will bankroll a feasibility study of its Tiris uranium deposit in Mauritania.

An open-pit project, it is estimated to be host to 49mln pounds of the radioactive material.

Mineralisation is found at just five to six metres, which makes for a cheap project that could, according to reports, be developed for around £38mln.

The company also owns the Häggån property in Sweden. At over 800mln tonnes is a heavyweight undertaking that would likely cost 10 more to develop than Tiris.

“We believe this now well-funded phase positions Aura ideally over the coming years as we build ourselves into a leading uranium developer, advancing our projects towards high margin, profitable production in the near to medium term,” said chairman Peter Reeve.

He also said there was a “substantial opportunity” for companies such as his as the world’s energy needs expand.

Increasingly electricity will come from alternative sources as fossil fuels are phased out.

This will inevitably mean the construction of more nuclear plants alongside large renewable projects.

However, not a great deal of investment has gone into development of sources of uranium used in these new power stations.

“We believe the resultant supply deficit in nuclear energy will be significant,” said Reeve.

“Nuclear power is a growing industry as it is low-carbon, reliable and long-lasting energy supply and acts as base load capacity.

“There are currently an increasing number of nuclear reactors being built and coming back on line globally, China, for example, is expected to double its nuclear generation capability by 2020. We expect substantial increases in pricing by the end of the decade to coincide with the first production from Tiris.”

Investors will be hoping that Aura enjoys the stock market success experienced by Berkeley Energia (LON:BKY), whose shares have tripled in value in the last two years.

Berkeley owns the Salamanca project in Spain, which is shaping up to be significant uranium deposit that is expected to figure in the top 10 producers.

The firm is now looking for full financing with construction expected to be completed next year.

Aura Energy delivers new uranium mineralisation at Tiris

Aura Energy Ltd (ASX:AEE, AIM:AURA) managing director and CEO Andrew Grove joins Proactive’s Jonathan Jackson to discuss developments at the Tiris Uranium Project in Mauritania. Grove shares promising results from the company’s phase one drilling program signalling extensive new uranium...

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