ASX- and Aim-listed Aura Energy has executed two agreements for the future sales of uranium oxide concentrate (UOC) from its Tiris uranium project, in Mauritania.

It has entered into a long-term offtake agreement with a major US-based nuclear utility, as well as a master spot sales agreement with a global uranium trading group.

Aura says this is its first long-term offtake agreement with a nuclear power utility, marking a major milestone for the Tiris project. The company notes that the US-based nuclear utility is a Fortune 500 company with an investment-grade rating as defined by Standard & Poor’s.

The contract is at market-related pricing within a collar price structure that is well above the forecast cost of production at Tiris.

Aura say the total contracted volume represents about 10% of Tiris’ projected uranium output over the four-year term of the agreement – from 2028 to 2031 – contingent on the delivery of UOC to a designated conversion facility in the US or Europe.

The company explains that the offtake agreement is subject to Aura securing project financing and making a final investment decision (FID) on the Tiris project by December 31, adding that other terms and conditions of the agreement are in line with industry standards.

It adds that the offtake agreement secures a range of revenues for the UOC covered by the contracted volume and term, locking in a minimum pricing mechanism that Aura anticipates will also likely be a condition of future debt and project funding arrangements for Tiris.

Moreover, Aura says the spot sales agreement allows for discretionary spot sales of UOC without long-term binding commitments.

The company notes that UOC can be delivered to agreed conversion facilities in France, Canada and the US, adding that this spot sales agreement provides Aura with flexibility to respond to market conditions and optimise revenue from spot market opportunities.

The company says the counterparty is an integrated international uranium group with an investment grade rating as defined by Standard & Poor’s. It says other terms and conditions of the agreement are in line with industry standards.

Aura notes that the spot sales agreement also allows Aura to take advantage of short-term market pricing backed by a highly credible counterparty.

The company says these agreements build on an existing offtake arrangement with uranium trader and investor Curzon Uranium and reinforce the credibility of Tiris and Mauritania as an attractive investment destination.

“These two agreements are a significant step forward for Aura as we progress towards uranium production. Securing an offtake agreement with a US-based utility underscores the credibility of the Tiris uranium project and supports our strategic goal of becoming a reliable supplier for the global nuclear energy sector.

“We remain focused on advancing financing discussions and bringing the Tiris uranium project into production,” says MD Andrew Grove.