International news within the industry of mining and metal, Jul, 17 2019
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Uranium offtake agreement concluded for Tiris uranium project

Map: Aura
Map: Aura
Published by
Simon Matthis - 29 Jan 2019

Aura Energy Limited has signed a binding off-take agreement with Curzon Uranium Trading Limited for the sale of its uranium production from the Tiris Uranium Project.


The agreement with Curzon covers the sale of 800,000 pounds of uranium production at fixed prices with a further 1.8 million pounds production available to Curzon as option volumes at fixed and market pricing. The agreement is over a seven-year period starting from the commencement of the mine and extendable thereafter by mutual consent.


The average price of the agreement is above US$44 per pound U₃O₈ compared with the current spot price of around US$29 per pound U₃O₈ and comfortably above Tiris' total operating cost.


With Tiris' anticipated production is approximately 1 million pounds U₃O₈ per annum and importantly the fixed pricing volumes of this agreement account for between 15 to 30% of production. This will ensure Aura Energy remains strongly exposed to the potentially higher uranium prices Aura expects in the future. Aura has also included the ability to claw back certain option volumes at its election should the price warrant this action.


Aura Energy is developing its calcrete uranium project in Mauritania and is currently completing a Definitive Feasibility Study DFS on the project. The Tiris Project is driven by low operating and development capital costs and is expected to commence construction shortly for an anticipated 2020 production start. (see notes 1 and 2 below)


Aura Energy was recently granted an Exploitation Licence by the Mauritanian Government to advance the Tiris Project.


"The completion of this agreement comes after many months of negotiation and clearly pushes Aura ever more closely to producer status. This agreement provides Aura with a strong level of certainty over the revenue stream from the fixed prices and excellent upside via the option volumes at market prices. With the price exceeding $44 per pound for this agreement Aura believes this is both constructive and prudent for a company such as Aura early in its development phase.


"With the DFS nearing completion and initial construction anticipated this year, the milestone that this agreement represents is undoubtedly significant. Also significant is the fact that the parties have come to an agreement in which retains its exposure the any upside the uranium price offers Aura over the life of the Tiris Project", Mr Peter Reeve, Aura's Executive Chairman, said.


Curzon is a London based trading company which focuses on the front end of the nuclear fuel value chain with a particular focus on U3O8 or yellowcake. Curzon engages with small to medium size junior miners on long term off-takes with possible investment where appropriate. As well as strategic mining investments, Curzon is active in the uranium spot and mid-term market as a trader of the physical material. Over a very short time, since the set-up of its uranium business in early 2017, Curzon has become a well-known and respected name within the uranium industry.


Curzon has a diversified portfolio of off-takes around the world to supply electrical utilities with nuclear fuel components on a long-term basis.