Aurora Energy Metals (ASX:AE) Shares Jump 40% on Friday. Here's Why.

Aurora Energy Metals Limited (ASX:1AE) has acknowledged the announcement by Eagle Energy Metals Corp. (Eagle) regarding its proposed merger with Spring Valley Acquisition Corp. II , a US-listed special purpose acquisition company (SPAC). If completed, the transaction will result in Eagle listing on Nasdaq as ‘Eagle Nuclear Energy Corp’, positioning itself as a publicly traded uranium and nuclear energy entity. The development is expected to advance the pathway for the Aurora Uranium Project (AUP), a uranium asset located in southeast Oregon, USA. The AUP is held by Oregon Energy LLC, a wholly owned subsidiary of Aurora Energy Metals. In November 2024, Aurora entered into a binding Option Agreement with Eagle for the potential acquisition of Oregon Energy LLC. A successful public listing by Eagle would trigger the issuance of AUD 16 million in Eagle shares to Aurora.

In addition to the initial share consideration, Aurora is entitled to further milestone-based payments under the agreement, along with a 1% Net Smelter Royalty (NSR) on any future uranium production from the AUP. During the option period, Eagle is funding up to AUD 250,000 to support ongoing technical work programs at the project site. Eagle is working toward converting the current JORC-compliant resource estimate of the AUP to SK-1300 compliance, a requirement for reporting mineral resources on US exchanges. This effort forms part of the broader listing process and regulatory framework in preparation for Eagle’s transition to a publicly traded company.

The sponsor group behind this transaction was previously involved in the merger of Spring Valley Acquisition Corp. I with NuScale Power Corporation in 2022. That earlier merger helped NuScale to scale its small modular reactor (SMR) business and is regarded as a notable example of a clean energy SPAC listing. Aurora considers the proposed transaction as a meaningful step in Eagle’s development and notes the alignment between the AUP’s uranium focus and the growing demand for nuclear energy and domestic uranium supply in the United States. The company stated it will continue to monitor progress and provide updates as more information becomes available.

Aurora Energy Metals Limited is an ASX-listed exploration company with a focus on critical minerals. The company holds uranium-focused assets in both Australia and the United States, with its flagship being the Aurora Uranium Project (AUP) in Oregon. The AUP contains the largest measured and indicated mineable uranium resource in the United States, with a total JORC-compliant resource of 107.3 million tonnes at 214 ppm U₃O₈ for 50.6 million pounds of contained U₃O₈. Aurora retains a significant economic interest in the AUP via its option agreement with Eagle, which includes share-based consideration, milestone payments, and royalty entitlements. The company is also advancing exploration work on uranium-prospective tenements in Western Australia, where initial studies have identified elevated uranium anomalies.

Aurora confirmed that there has been no material change to the mineral resource estimate first reported in November 2022 and that the assumptions and parameters remain current. The company continues to assess opportunities across its portfolio in line with its strategic focus on supplying minerals relevant to global energy transition needs.

1AE shares were trading 40.00% higher at AUD 0.070 per share as of 1 August 2025.