Mills & Reeve advises on £2.24m flotation of uranium development company

Mills & Reeve advises on £2.24m flotation of uranium development company

The Leeds corporate team at Mills & Reeve has advised on the flotation of uranium development company, Aura Energy, on the AIM at the London Stock Exchange.

Aura Energy, which is also listed on the Australian Securities Exchange, has gold, soda ash and lithium exploration projects in Africa and Europe.

Principal associate Shubhu Patil at Mills & Reeve, advised Aura Energy’s broker WH Ireland on the flotation.

The company raised £2.24m before expenses by way of a placing as part of the AIM listing giving it a market capitalisation of £7.45m on admission.

It has also executed subscription letters with a number of Australian investors to raise a further £466,990. It is anticipated that the subscriptions will complete on or around 16 September 2016.

The funds raised will be utilised towards completing Aura’s Tiris uranium project feasibility study in Mauritania, and associated corporate costs. The company also owns 100% of the Häggån uranium project in Sweden and has exploration tenements in gold, lithium and soda ash in Mauritania.

The float is the first equity capital markets transaction the Leeds corporate team has advised on since Shubhu Patil joined the team from Walker Morris in June.

Patil said: “We are delighted to advise on the admission to trading of Aura Energy to AIM. The deal reflects our strategy of further enhancing our reputation for capital markets work for both UK and international companies.”

Peter Reeve, executive chairman of Aura Energy, said: “This is an outstanding outcome for Aura Energy and we have always believed that, given our European and African focus, dual listing on AIM was both an attractive option for Aura and a natural marketplace for us.

“This is a transformational period for Aura, and as only the second quoted uranium company on AIM, we believe the Company will generate significant traction for our shareholders as we progress our strategy of phased development and low capital cost projects to allow early cashflow generation particularly from the Tiris uranium project.”

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