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(Alliance News) - Aura Energy Ltd on Thursday noted that it is in an "enviable" position, given the recent strengthening of uranium prices, and the Australian minerals firm also took aim at a shareholder which has previously called for sweeping changes of the company's board.
Reporting on its activities over the first quarter of 2020, Aura said that the low cash costs at the Tiris uranium project in Mauritania "have positioned the company in an exceptionally strong position given the rise in the uranium price in recent weeks".
"Aura is in the enviable position of possessing a construction-ready uranium project which the board believes is one of the most compelling uranium development projects in the world," Aura added.
"The key focus in the quarter was on financing activities for the Tiris Uranium project via the Export Credit Agency financing process, which was buoyed, subsequent to the quarter end, by the significant rise in the uranium price."
Meanwhile, a compensation claim in Sweden is "ongoing".
Aura back in January said the claim from the Swedish government has reached the highest level of Sweden's legislature.
Aura explained at the time that it was informed the Chancellor of Justice, "the highest level of government" in Sweden, is reviewing the case, which will see the Victoria, Australia-based firm attempt to receive compensation for a uranium ban.
In March, Aura said it rejected a convertible loan note proposal from a shareholder which has previously called for sweeping changes of the company's board.
ASEAN Deep Value Fund and Non-Executive Director John Bennett between them called for six new directors to be added to Aura's board, the company had said in February.
ASEAN backed replacing an existing financing agreement with a convertible loan note worth between AUD3 million and AUD4 million, about GBP1.5 million to GBP2.1 million. It would carry an interest rate of 15% per year.
"It is also important to note, the ASEAN letter sent to shareholders displayed its contradictions. ASEAN states the royalty is only payable if the Tiris project goes ahead; however, the fundamental reason ASEAN has invested in the company is that it believes there will be a significant recovery in the uranium price and as such the project will proceed," Aura said.
"Additionally, with six directors proposed to join the board from Panama, Indonesia, and Hong Kong, the company, and therefore shareholders, have still not been furnished with details of these directors' experience or backgrounds. This shows the utmost disregard for shareholders and for good governance given this information is required for Aura to comply with ASX and AIM governance recommendations."
Shares in the company closed 7.1% higher at 0.19 pence each in London on Thursday.
By Eric Cunha; ericcunha@alliancenews.com
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