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(Alliance News) - Shares in Aura Energy Ltd dipped on Monday, as the company revealed plans for a discounted placing and buyback program, despite reporting narrowing losses and operational progress across its mining portfolio.
Aura is a minerals exploration company with projects in Mauritania, Sweden and Western Australia. Shares in Aura were down 7.9% at 9.90 pence each in London on Monday.
In the six months ended December 31, the company's pretax loss was AUD2.5 million, around GBP1.3 million, narrowed 15% from AUD2.9 million a year prior.
Losses per share over the period dropped 19% to 0.52 cents per share from 0.64 cents.
Aura generated no revenue in the period, unchanged from 2022.
As at December 31, the company had a cash balance of AUD5.9 million, down from AUD11.2 million at June 30.
At the company's Tiris uranium project in Mauritania, Aura said it is expecting a final investment decision to be reached by the end of 2024, with first production targeted for mid-2026.
A February front-end engineering design study confirmed that Tiris could become "a globally significant near-term uranium operation", Aura said, and estimated its net present value at USD366 million.
The company also said it was supporting the Swedish government in potentially rescinding the country's ban on uranium mining, which would add "additional upside to the economic outcomes" for its Haggan vanadium project.
Aura separately announced a placing of around 90.2 million shares to raise funds for the development of Tiris and Haggan. The company said that it has received investor commitments for around AUD16.2 million at an issue price of AUD0.18 per share, representing an 18% discount to the company's Thursday closing price of AUD0.22.
Aura also announced its intention to commence a share buyback program to raise up to AUD2.0 million through the issue of 11.1 million at the placing price.
By Hugh Cameron, Alliance News reporter
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