Aurora Energy Metals (ASX:1AE) has mutually agreed to extend the exclusivity period regarding Macro Metals’ (ASX:M4M) proposed acquisition of an 85% interest in the lithium rights over Aurora’s namesake project in Oregon, US.
The exclusivity period has now been extended to 7 May 2024.
Aurora, which has a market capitalisation of $25 million, says the extension will provide additional time for Macro Metals to progress its due diligence activities.
Under the agreement, as previously reported, Macro was granted an exclusive 3-month period to conduct due diligence and complete formal documentation for a fee of $50,000.
Due to the option period being extended, an additional option fee of $50,000 has been paid to Aurora.
Should the deal go ahead, Aurora will retain the remaining 15% interest and 100% of the non-lithium rights, to focus on the development of the Aurora uranium deposit.
Macro will issue Aurora just over 666 million ordinary shares at an issue price of $0.003, plus an additional 666 million options in 3 equal tranches exercisable at $0.008, $0.012, and $0.016 within 5 years.
Aurora Energy Metals’ flagship project has the largest, mineable, measured and indicated uranium deposit in the US. It has a Mineral Resource Estimate (MRE) of 107.3Mt @ 214ppm U3O8 for 50.6 Mlbs U3O8) with known lithium mineralisation in lakebed sediments above and surrounding the well-defined uranium deposit.
Macro Metals, formerly known as Kogi Iron, is a Perth-based explorer focused on becoming an African iron ore producer through the development of its wholly owned Agbaja Iron Ore Project.
Aurora Energy Metals is an Australian explorer and developer focused on minerals critical for the energy transition.
As of 31 December 2023, the company had $2.637 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Aurora Energy Metals
