As per the terms of the co-operation agreement, Areva will take up an agreed work program with regard to the project over an initial four month period.

Aura Energy managing director Dr Bob Beeson said key to the selection of Areva as a strategic partner for the project was its leading position in the uranium mining industry.

"This relationship will assist the Company in the development of Häggån on which we plan to begin a pre-feasibility study by the end of 2013. Areva’s interest in the Project is a strong sign of support and we look forward to establishing a productive working relationship," Beeson added.

During the four-month period, Aura and Areva will work to finalise a pre-feasibility study work program.

The companies will also conclude the terms of an option agreement and joint venture agreement under which Areva may acquire an interest in the project.