Investment establishes valuation of C$50M for the polymetallic Häggån project

Investment establishes valuation of C$50M for the polymetallic Häggån project

Aura Energy Limited (ASX: AEE, AIM: AURA) (“Aura” or “the Company”) is pleased to announce that MMCAP International Inc. SPC (‘MMCAP’) and certain other strategic investors (together the ‘Strategic Investors’) will provide funding of C$10 million for a 19.7% interest in the Company’s polymetallic Häggån project (‘the Häggån Project’) located in Sweden, establishing its value at C$50 million.

Aura has entered into a binding agreement to transfer 100% of the Häggån Project to SIU Metals Corp. (‘SIU Metals‘), an unlisted Canadian public company, in consideration for acquiring shares in SIU Metals. The agreement will result in SIU Metals being the 100% owner of the Häggån Project.

Aura will retain 78.7% ownership of SIU Metals and the Strategic Investors will own 19.7% after contributing C$10 million via a private placement. SIU Metals intends to seek a stock market listing on the TSX Venture Exchange (‘TSXV’) in connection with the transaction.

HIGHLIGHTS

  • Valuation for Häggån project established at C$50 million (A$55 million)
  • Agreement with MMCAP and certain other strategic investors to provide aggregate gross proceeds of C$10 million to SIU Metals, which will be renamed following the transaction
  • Proceeds to be used for the advancement of the Häggån project, including permitting and resource expansion through continued exploration including on surrounding tenements
  • Aura will retain ownership of 78.7% of SIU Metals and consequently will retain indirect exposure to the Häggån project post-transaction
  • Aura to appoint new officers and directors to SIU Metals on closing of transaction
  • Financing is expected to complete in February 2026, with the transaction expected to complete in June 2026
  • New Canadian listed company to benefit from increased visibility and direct comparison with valuation of other public companies with similar deposits
  • On 1 January 2026, the Minerals Act in Sweden was amended to allow exploration for and extraction of uranium
Phil Mitchell, Executive Chairman Aura Energy, said:

“We are delighted to welcome investors of the calibre of MMCAP, Aura’s largest shareholder, and other high-quality investors into this new vehicle for Aura’s Häggån project, and the future support they can bring. We believe their investment is a demonstration of the quality and potential of the project, and its exciting future as, following legislation changes brought into effect on 1 January 2026, mining of uranium is now allowed again in Sweden. This transaction shines a spotlight on the under-recognized value of Häggån within Aura Energy, and creates an independent and dedicated pathway for funding, growth and management of the project.

Upon successful completion of the transaction, Aura’s existing shareholders will continue to benefit from Häggån’s upside potential, and by way of a direct comparison with the valuation of other companies with similar deposits in the region.”


Click here for the full ASX Release

This article includes content from Aura Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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