Aura Energy Raises AUD3.7 Million In Over-Subscribed Capital Raising (ALLISS)

29th Mar 2018 13:30

LONDON (Alliance News) - Aura Energy Ltd said Thursday it raised AUD3.7 million in a "heavily over-subscribed" capital raising in order to fund its vanadium project in Sweden.

Aura issued 194.7 million shares at 1.9 Australian cents and 97.4 million million options exercisable at 3.3 cents under the placement. After admission - expected on April 12 - Aura will have 1.06 billion shares outstanding.

Aura said the capital raising was "more than twice" over-subscribed and will see funds directed towards its Haggan project in Sweden. Aura says Haggan had "globally significant quantities" of vanadium and has the potential to become one of the world's largest source of the metal which is key for creating steel alloys.

"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 Haggan Battery Metal Project in Sweden", Aura Chairman Peter Reeve said.

"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 Haggan Battery Metal Project and the Haggan IPO," Reeve added. "Once again Aura's key shareholders have remained very supportive of the company's long-term plans and, along with clients of Peak Asset Management, contributed strongly to this raising. We thank them for their effort."

Shares in Aura were 4.2% higher at 1.25 pence on Thursday.

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