Australian mining company Aura Energy has initiated a dual financing process to develop its flagship Tiris Uranium Project in Mauritania. The company has enlisted financial firms Orimco and Macquarie Capital to facilitate financing, with a final investment decision targeted for the end of 2024.
Orimco – which specializes in custom debt programs for West African projects – is tasked with arranging debt financing for the project, while Macquarie Capital will engage potential investors with regards to a strategic investment in the project. Funding arrangements could likely involve direct participation in the project or the purchase of future production from the mine.
Through the dual financing process, Aura Energy is seeking an integrated funding solution for Tiris. The strategic funding process seeks to achieve the best funding package, minimize project risk, optimize equity needs and enhance value for Aura shareholders.
“The appointment of Orimco as debt advisor and Macquarie’s consideration of strategic investment options are crucial steps in the advancement of Tiris, as we work towards a final decision on investment at the end of 2024,” said Andrew Grove, CEO of Aura Energy.
The Tiris project – expected to start production in 2026 – aims to deliver 30 million pounds of uranium over 16 years, generating $2.25 billion based on a uranium price of $80 per pound. Aura Energy is gearing up for a mining decision in late 2024 or early 2025. The company has completed the FEED study for the project as well as the resource drilling program.
“The recent FEED Study ASX release concluded that the Tiris Uranium Project is a near-term, low-cost, long-life mine with exceptional further growth opportunities, and recent offtake agreements further enhanced the economics…” added Grove.
The commencement of mining is pending various key steps such as resource and mine planning updates, establishment of an owner’s team, finalization of construction scope and budget, commitments to early works, government development consents, arrangements with key offtake partners and project financing.
