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Mexicanelephanton Feb 10, 2009 8:56pm
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Aura Energy down on axed $460m deal
10-February-09 by Rebecca Lawson
Shares in Aura Energy have fallen on news that Sino King EnterpriseInvestment has pulled out of a $460 million deal over a uranium projectin Sweden.
In a statement released after market close yesterday, Aura said thatdue to the exploration status of the Storsjon project, it was not ableto provide the necessary information to Sino to help conclude theirevaluation.
In October last year, both companies signed a heads of agreement whereSino had the right to acquire an 80 per cent interest in the project bypaying up to $460 million.
News of the expired deal sent Aura shares 13.51 per cent lower to 16 cents at 12:15 AEDT.
Aura managing director Bob Beeson said other parties have expressedinterest in the company and the project as a result of the originalSino agreement.
"Now that the agreement has expired, Aura is free to hold discussionsregarding future participation in, and funding of, the project withthese parties as well as Sino King," he said.
Sweden is due to overturn a 30-year old ban on atomic plants as part ofa drive to increase energy security and combat global warming.