Australia's Aura Energy to float shares in London by end September

(Recasts with CEO comments, details)

LONDON, Aug 15 (Reuters) - Australian uranium miner Aura Energy Ltd is making a bet on a rebound in uranium prices as it lists in London, hoping to raise about 2.85 million pounds (US$3.7 mln) to fund development of a mine in Mauritania, its chief executive said on Monday.

The company, already listed on the Australian Securities Exchange, plans to list new shares on London's AIM market by the end of September, saying the currently oversupplied uranium market will shift to face a supply deficit just as its main project is due to come onstream.

It will use most of the proceeds from the listing to fund its Mauritania project, which is in the process of a feasibility study with output of uranium expected to begin in 2018 or 2019.

"The timing for when we get the (Mauritania) mine studied, constructed and ready to pour the first yellow cake means that we will be right in that time frame when people are saying we will need to cover a supply deficit," Chairman and Chief (Taiwan OTC: 3345.TWO - news) Executive Peter Reeve told Reuters.

Spot prices of uranium, used to make fuel for nuclear power production, have been depressed since the 2011 Fukushima disaster in Japan led Japan to shut down its reactors and created high stockpiles globally.

Demand for uranium, however, is growing rapidly with China in particular aggressively building reactors, and uranium markets are expected to face a supply shortage by the end of the decade.

"I would rather not be producing uranium right now because it's such a tough time in the market but I will love producing uranium in 2018-2019," Reeve said.

The world's largest uranium producers such as Areva SA (LSE: 0P4A.L - news) and Cameco Corp have said they will hold off on expansion and exploration projects due to low prices, despite the forecasts for a supply shortfall.

Aura Energy (Other OTC: AUEEF - news) also owns an undeveloped uranium mine in Sweden, and has exploration permits for gold, soda ash and lithium as well in Mauritania. Reeve said the company may start producing gold as prices of the yellow metal are on the rise. ($1 = 0.7731 pounds) (Reporting by Zandi Shabalala; Editing by Susan Fenton)