LONDON (ShareCast) - (Sharecast News) - Australian minerals company Aura Energy said on Friday that it had struck "two significant agreements" for the future sale of uranium oxide concentrate (UOC) from its Tiris uranium project in Mauritania.
Aura said the first agreement was a long-term offtake deal with a "major US-based nuclear utility", its first long-term offtake agreement with a nuclear power utility.

The AIM-listed firm highlighted that the offtake agreement secured a range of revenues for its uranium oxide concentrate project covered by the contracted volume and term, locking in a minimum pricing mechanism that it anticipates will also likely be a condition of future debt and project funding arrangements for Tiris.

Aura then said the second agreement was a master spot sales agreement with a leading global uranium trading group, providing it with flexibility to respond to market conditions and optimise revenue from spot market opportunities while being backed by "a highly credible counterparty".

However, Aura Energy also noted that the impact of both agreements on the value of its securities, while considered positive, was "currently difficult to measure and offers perhaps more qualitative than quantitative reassurance at this time".

Managing director Andrew Grove said: "These two agreements are a significant step forward for Aura as we progress towards uranium production.

"Securing an offtake agreement with a US-based utility underscores the credibility of the Tiris Uranium Project and supports our strategic goal of becoming a reliable supplier for the global nuclear energy sector."

As of 1115 BST, Aura shares were up 6.21% at 7.70p.



Reporting by Iain Gilbert at Sharecast.com

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