Aurora in venture with WorleyParsons

20/01/2017 - 14:08

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Shares in Aurora Labs were higher on the announcement of a commercial venture with engineering business WorleyParsons to incorporate its metal 3D printing technology into operations across a number of industries.

Aurora in venture with WorleyParsons
Aurora Labs' 3D metal printing technology.

Shares in Aurora Labs were higher on the announcement of a commercial venture with engineering business WorleyParsons to incorporate its metal 3D printing technology into operations across a number of industries.

Perth-based Aurora, which listed on the ASX last August after completing a $2.8 million initial public offering, said a non-binding term sheet had been signed with Worley, with the venture seeking to use Aurora’s products and technology to benefit major infrastructure and resource companies.

“Aurora has been in discussions with some of the world’s largest mining companies concerning assisting them to reduce their inventories of spare parts through the use of Aurora’s 3D metal printers,” the company said in a statement.

“The relationship (with Worley) will focus on four areas – licence and distribution, design and certification, print bureau, and powder production.”

Under the initial 12-month venture, it is proposed that Aurora’s 3D metal printing machines and consumables will be sold and distributed, while the two companies hope to establish a business for the development of designs that can be purchased and used for the products.

The venture has also touted plans to establish a printing bureau, whereby designs would be printed for third parties using Aurora’s machines.

It will also seek opportunities to create a market for bulk and specialty powders to be used by Aurora’s machines.

“Whilst Aurora is optimistic that a more definitive arrangement may be reached, there is no assurance that any legally binding agreement will be entered into or that any matter contemplated by the term sheet will be completed,” Aurora said.

The value of Aurora’s shares has exploded since the company first began trading.

On its ASX debut last year, Aurora shares jumped from its IPO price of 20 cents to about 50 cents each.

Today, they are worth $3.23 each, with the company’s stock closing 9.4 per cent, or 28 cents, higher than Aurora’s opening price this morning.

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