Aurora Energy Metals (1AE.ASX) has received a US$300,000 cash payment from Eagle Energy Metals Corp. to extend its exclusive option to acquire the Aurora Uranium Project (AUP) for another six months. This marks the second scheduled payment, following Eagle’s successful US$8 million pre-IPO capital raising at a US$58 million pre-money valuation. These funds will facilitate Eagle’s planned US stock exchange listing and cover project expenditures during the option extension.
In addition to the option payment, Eagle will invest US$250,000 in approved work programs, focusing on metallurgical optimization and converting the existing JORC resource to the US SEC’s SK1300 standard. This conversion is vital for Eagle’s listing and will trigger further share-based consideration for Aurora.
Aurora stands to gain significantly from the AUP’s future development, potentially receiving US$16 million in Eagle shares upon the US listing, up to US$5 million in Eagle shares based on resource milestones (tied to achieving a 40Mlb Measured and Indicated SK1300 resource), US$5 million in Eagle shares upon a positive Pre-Feasibility Study, and a 1% Net Smelter Royalty (NSR) on future uranium production. This structure allows Aurora shareholders to maintain exposure to the AUP’s upside through equity, milestone payments, and royalty income.
The metallurgical testwork program is progressing as planned, with final optimization underway. Building on previously reported improvements, this phase will refine processing assumptions for an Optimised Scoping Study expected later this year.
Aurora has also extended the option period for its Western Australian uranium portfolio following initial due diligence. This portfolio includes tenements and applications targeting palaeochannel-style uranium deposits. The extension will facilitate fieldwork and technical evaluation, providing exposure to uranium exploration in Western Australia.
Chairman Peter Lester expressed satisfaction with Eagle’s capital raising and progress towards a US listing, noting that the extension payment and funding commitment will help unlock value from the AUP. The company anticipates providing further updates as Eagle advances toward its US listing and associated milestones.
