$3.4m for uranium projects: Aura

WA-based uranium explorer Aura Energy is set to raise $3.4 million in the form of a non-renounceable entitlements issue, fully underwritten by Cygnet Capital.

22.8 million new shares and options will be issued for Aura shareholders from the pro-rata issue.

The raising will involve one new share being issued for every six shares held, at a price of 15 cents per share, as well as a one-for-one free attaching option exercisable at 20 cents on or before December 1, 2014 for every new share issued.

Aura, led by chairman Brett Fraser, said the funds will be used to finance ongoing studies, test work, and drilling upgrades at the company’s two main uranium projects in Häggån, Sweden and Reguibat, Mauritania.

The company said it aims to increase shareholder value through securing resources and then by conducting feasibility studies on their Häggån and Reguibat projects.

The company also has 100 per cent ownership of the Wondinong uranium project near Mt Magnet, WA, as well as other projects in both Sweden and West Africa.

Perth-based Pareto Capital acted as corporate advisor for the transaction.

Aura shares are currently trading at 19 cents.