Aurora Energy Metals (ASX: 1AE) has changed tack with its uranium strategy, entering into option agreements for the purchase of a number of tenements across Western Australia and the sale of its Aurora project (AUP) in the US.

The company says its belief that there may be a change in policy regarding uranium mining in WA played a role in its decision.

Aurora has already made an acquisition option payment of $50,000 to buy 100% of Metalbelt Holdings, the holder of the WA portfolio of tenements.

Local focus

Aurora chair Peter Lester said the Metalbelt agreement provides the company with an opportunity to “test some highly prospective uranium targets in our local jurisdiction presented as a low-cost, low-risk strategy that broadens our portfolio.”

“The Metalbelt projects have a very clear pathway for technical evaluation and excellent exploration potential,” he added.

“As a company, we are cognisant of the current uranium mining ban in Western Australia.”

“However, we recognise the growing momentum for uranium worldwide, along with heightened discussions around the mining of uranium—not just in WA but nationally.”

Shift in sentiment

Aurora believes this momentum could ultimately lead to a shift WA state policy.

“In the meantime, we have the knowledge, relationships and access to thoroughly assess the Metalbelt licences and applications through a considered exploration program, while the AUP continues to be progressed by Eagle Energy Metals in North America,” Mr Lester said.

The Metalbelt assets have produced elevated uranium radiometric responses identified from regional geophysical surveys over prospective geological settings.

Work program

Aurora is now developing a work program for the tenements and applications, including both technical and commercial evaluations to inform a decision on whether to exercise the option.

Initial work will focus on landholder engagement and surface inspections with portable spectrometers.

Subject to initial sampling and securing access, any areas of interest will be followed up with drilling and geophysical methods to define the extent and geometry of any mineralisation and host channels.

AUP sale

Meanwhile, under the option agreement executed with Eagle Energy Metals (EEM) for the strategic sale of the AUP, Aurora will receive an initial share consideration of $24.7 million in EEM upon the completion of its proposed US listing.

A successful listing would see Aurora hold approximately 40% equity interest in EEM, providing shareholders with ongoing exposure to the project’s upside.

The sale would also allow an experienced US-based management team to apply the local expertise required for project development, permitting and access to US domestic energy supply incentives.