Aura Energy Limited (ASX:AEE, AIM:AURA), an Australian-based company focused on the development of uranium and battery metals to support a cleaner energy future, has announced the execution of two agreements for the sale of Uranium Oxide Concentrate (UOC) from its Tiris Uranium Project in Mauritania. The agreements include a long-term offtake agreement with a major US-based nuclear utility and a master spot sales agreement with a leading global uranium trading group. The US utility is a Fortune 500 company with an investment grade rating as defined by Standard & Poor’s.
The offtake agreement covers approximately 10% of Tiris’ projected uranium output over a four-year period (2028–2031) and is contingent on Aura securing project financing and making a Final Investment Decision (FID) by 31 December 2025. The contract employs market-related pricing within a collar price structure exceeding the forecast cost of production at Tiris. The spot sales agreement allows for discretionary spot sales of UOC, offering flexibility to respond to market conditions. UOC can be delivered to agreed conversion facilities in France, Canada, and the US.
Aura Energy Managing Director, Andrew Grove, stated that the agreements are a significant step forward as the company progresses towards uranium production. He added that securing an offtake agreement with a US-based utility underscores the credibility of the Tiris Uranium Project and supports the strategic goal of becoming a reliable supplier for the global nuclear energy sector.
While the agreements are critical in supporting funding activities and demonstrating the ability to sell UOC produced from Tiris, both agreements remain subject to procuring project financing and the making of a FID. First production from Tiris is estimated to be approximately 18 to 20 months from FID, assuming financing is procured and a FID is made in the affirmative. The proposed Offtake Agreement is also limited to up to 10% of production over the four-year period.