A uranium explorer linked to prominent former politician and Indigenous businessman Warren Mundine has taken a financial hit this week amid its uncertain future.
Insolvency concerns raised in March by internal auditors for Aura Energy – which Mr Mundine has been a director of since December 2021 – prompted an emergency capital raising offering of 18c a share.
Company documents showed Chadwick Hall warned the miner - which has projects in Africa and Europe - there was "material uncertainty" it could remain solvent.
This led to a 33 per cent slump in Aura's share price on the ASX to 16.5c, after market losses of $9.79 million in the 18 months to December 31.
Aura's struggles come amid a challenging and competitive global renewables sector, and is the second critical minerals company linked to Mr Mundine with investment issues.
Fuse Minerals – which he chairs – fell well short of the required $6m to list on the ASX in March, after an elongated capital raising period of four months, with its initial two-week $10m IPO in December unattractive to investors.
Aura Energy shares were trading at 14c on Friday, a market capitalisation of $103m - $60m less than its value in January 2024 - when its shares began the year trading at 27c, with a 52-week high of 36c last October.
Aura Energy managing director and CEO, Andrew Grove this week said significant progress had been made on its Tiris Uranium Project in Mauritania.
He said the company hoped to determine its final investment position early next year, with Macquarie Bank to assist with funding and strategic investments to help equity shortfalls.
Mr Grove said recent developments had included the commencement of water drilling, and the engagement of a project management team.
Uncertainty in Australia's critical minerals market has recently intensified, amid ongoing and divisive political debate over Australia's nuclear energy future.
Fuse's collapsed float and Aura Energy's market tumble this week would align with federal Opposition leader Peter Dutton and the Liberal party, who favour nuclear development in Australia, despite cost advantages in the renewables sector.
Mr Mundine, an ex-director of the Australian Uranium Association, recently told National Indigenous Times he was confident of the viability of Australia's critical minerals industry, while promoting Fuse's prospects, but noted it "was not an easy market here".
"We're quite confident in the project… we've got three sites… doing base metal, but copper is our main focus," he said on the eve of Fuse's IPO deadline on March 24.
"And that, as we know, in the next three years is going to be the big thing, with the renewable energy industry."