(Alliance News) - Aura Energy Ltd on Tuesday said it has amdended its offtake agreement with Curzon Uranium Ltd regarding the development of the Tiris uranium project in Mauritania.
Aura Energy is a minerals exploration company with projects in Mauritania, Sweden and Western Australia.
The new agreement provides Aura, and its subsidiary Tiris Ressources SA, with "materially higher realised uranium prices that will enhance shareholder returns and third-party financing opportunities, while giving Curzon certainty about its supply arrangements," it said.
The new contract will provide for a fixed volume of 300,000 pounds per annum of uranium concentrate, which will be delivered over seven years, totalling 2.1 million lbs of uranium, from 2.6 million pounds originally.
In addition, the average fixed price contract price has been increased by 70% to USD74.75 per pound of uranium from USD44.09.
Aura Chief Executive Officer Andrew Grove said: "We are very pleased with the cooperation and consideration received from Curzon - a leading global trader in uranium - on this restructured offtake agreement and welcome Curzon as an important partner and Aura shareholder for the development of the Tiris Uranium Project which will have significant mutual benefits for both parties."
"The restructured offtake agreement releases significant value in the Project and is another important step in the development of the Tiris uranium project."
Shares in Aura Energy were up 0.1% at 9.26 pence each in London on Wednesday afternoon.
By Sabrina Penty, Alliance News reporter
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Aura Egy (AURA)