The reasons for Areva Mines’ decision to not proceed with the deal have not been disclosed.

The two companies had entered into a binding cooperation agreement in February 2013, after Aura Energy received an unsolicited proposal from Areva Mines in August 2012.

Aura Energy managing director Bob Beeson said that the Häggån Project is the second largest undeveloped uranium resource worldwide with an inferred resource of 803 million pounds of uranium as well as various co-products like nickel, zinc and molybdenum.

"Aura maintains that the Häggån Project is a strategic asset that has the potential to provide long term uranium supply to the European Union," Beeson said.