Aura Energy (ASX: AEE, AIM: AURA) is targeting a final investment decision (FID) for its Tiris uranium project in Mauritania by the end of 2026 after signing a memorandum of understanding (MOU) with a “major international nuclear utility” and advancing multiple funding options.

The Australian miner said in an update on June 2 that the non-binding MOU covers potential investment, uranium offtake and technical collaboration linked to the Tiris project, which would become Mauritania’s first uranium mine and the country’s first new mine in two decades.

Aura said the agreement supports a pathway toward a “substantial, well-capitalised funding partner” without excluding other financing routes. The company added that its bankable feasibility study (BFS) remains on track for completion in September 2026, with the FID targeted before year-end.

The company said its funding strategy includes a potential cornerstone equity investment from the unnamed nuclear utility, senior project debt discussions with the U.S. International Development Finance Corporation (DFC), and a separate non-binding fully funded proposal from a major US investment fund.

Aura executive chairman Phil Mitchell described the agreement as a “defining moment” for the Tiris project and said the company had now settled the processing flowsheet, removing a major technical uncertainty ahead of development.

The company said the revised processing design combines pre-leach centrifuge separation with ATA polymer dewatering and horizontal vacuum belt filtration technology. The ATA system is owned by Clean TeQ Water (ASX: CNQ).

Aura said early-stage analysis indicated positive project economics, although it stressed the assessments remain preliminary pending completion of the BFS. The company is also studying a potential expansion of annual uranium production capacity from a base case of 2mn pounds of U₃O₈ per year to as much as 3.5mn-4mn pounds annually.

The company said it was continuing optimisation work on mining methods, uranium recovery rates and energy costs, highlighting Mauritania’s strong solar-energy potential as a possible source of lower-cost power for the operation.

According to Aura, the MOU outlines a framework for potential strategic equity investment, funding support, uranium offtake agreements and technical cooperation, including a pilot plant programme in Mauritania expected to be completed by the fourth quarter of 2026.

Aura said the identity of the nuclear utility remains confidential under the terms of the agreement and will only be disclosed when required under ASX listing rules or once confidentiality obligations lapse.

While Mauritania is not currently a uranium producer, Africa already hosts some of the world’s largest uranium-producing jurisdictions, including Niger and Namibia, while developers across Tanzania, Zambia and Botswana are also advancing uranium exploration and development projects amid rising long-term demand forecasts tied to nuclear power expansion.​

The renewed investment push comes as utilities in Europe, Asia and North America seek to secure future uranium supply outside traditional markets following geopolitical disruptions and tightening global inventories. Uranium prices have strengthened sharply since 2021, supporting new project development across Africa’s mining sector.

Spot uranium prices climbed from below $30 per pound in 2020 to above $100/lb in early 2024 — the highest levels in more than 15 years — before easing back into the $70–80/lb range during 2025 and 2026. The rally has been driven by growing reactor demand, supply disruptions in major producing countries such as Niger and Kazakhstan, and increased long-term contracting activity by utilities seeking to secure future fuel supply.