Macro decides against rights acquisition

Peppermint Grove-based Macro Metals has announced it will not exercise an option to acquire an 85 per cent stake in lithium rights at the Aurora Energy Metals project in the US state of Oregon. 

Macro told the market that following a strategic review into the company's assets and priorities, it was shifting focus to its Western Australian iron ore portfolio - and pursuing a US-based project didn't align with this.

"Our Cane Bore, Catho Well and Goldsworthy projects all have the potential to deliver significant shareholder value," Macro's managing director Simon Rushton said.

"Importantly, once approvals are in place, they should also be capable of fast-tracked commercialisation due to their proximity to established supply chain infrastructure.

"The other key factor behind us reaching this decision was our intent to limit further dilution unless there is a multiple in upside to shareholder value of doing so - we did not see that benefit being realised on this occasion and elected to avoid the dilution that would have resulted from completing the acquisition.

"We would like to take the opportunity to thank Aurora Energy Metals for their assistance and collaboration throughout the due diligence process."

Despite the acquisition not going ahead, ASX-listed Aurora received $100,000 in non-refundable option fees from Macro throughout the transaction process." 

In addition, Aurora provided an interim update into the scoping study at its uranium project in the US state of Oregon, which is expected to be completed early in the second quarter of 2024.

Aurora is optimistic about the project's future, given it is the biggest mineable, measured and indicatable uranium mineral resource in the US. 

Production at the project is also tipped to begin in 2028, which could also prove telling, given the US House of Representatives passing legislation late last year to ban Russian uranium imports into the country from 2028. 

In order to become law, the legislation still needs to pass the US Senate. 

Should the ban be enforced, Aurora believes it would have a great opportunity to support the US's need for uranium, given it is the world's biggest consumer of the commodity. 

Earlier this year, several Australia-based uranium explorers were also able to capitalise on news from Kazakhstan that Kazapromtom - the world's largest producer of uranium - was required to downgrade its annual production guidance for the 2024 financial year due to a sulphuric acid shortage.

Aurora closed trade at 9 cents per share, down 10 per cent, while the uranium spot price is presently $US89.65 per pound.