Aura Energy secures funds for vanadium project, shares rise...

Aura Energy secures funds for vanadium project, shares rise

11:21 29 Mar 2018
Shares rose as much as 19% in early trading today, trading as high as 2.6 cents.

The capital raising was more than twice over-subscribed Aura Energy Ltd (ASX:AEE) (LON:AURA) has completed a heavily oversubscribed capital raising priced at 1.9 cents which has secured $3.7 million in funding.

The share placement to sophisticated investors in Australia and the United Kingdom was more than twice oversubscribed.

Aura will now recommence technical and study work on its flagship Häggån Battery Metal Project in Sweden.

Vanadium concept study to commence
Aura Energy's executive chairman Peter Reeve said: “Aura has an excellent portfolio of projects and metals and vanadium’s recent dramatic price rise has presented an extraordinary opportunity for Aura to recommence the push to develop the Häggån Battery Metal Project in Sweden.

“The capital from this raising will be carefully deployed to advance Aura’s current technical programs with particular emphasis on test work and flowsheet development for the vanadium element of the Häggån Battery Metal Project and the Häggån IPO.”

Aura Energy will also undertake a vanadium concept study into the production of high-purity vanadium pentoxide at the Häggån Battery Metal Project.

International initial public offering (IPO) planned
The company will also progress, with urgency, its separate listing of the Häggån Project as an international IPO.

Terms of the share placement
Under the two-tranche placement, 194.7 million shares priced at 1.9 cents will be issued in total.

Furthermore, placement shares come with a 1:2 attaching option exercisable at 3.3 cents expiring September 2019.

This means 97.3 million options will also be issued.

Because this is a two-tranche placement, shareholder approval will be required to issue the second tranche of the shares and options.

http://www.proactiveinvestors.com.a...-for-vanadium-project-shares-rise-193985.html