Energy Fuels, listed on the NYSE under UUUU, has announced a strategic partnership with Astron Corp. from Australia, aimed at the development and management of the Donald rare earth element and mineral sands project located in Victoria state.
The Donald project represents a significant opportunity for Energy Fuels, as it holds promise for offering a near-term, cost-effective, and large-scale source of monazite sand in a rare earth element (REE) concentrate. This concentrate will be shipped to Energy Fuels’ White Mesa mill in Utah for processing into REE oxides and other advanced REE materials.
Having secured most of the necessary licenses and permits, the project is on track to potentially supply the White Mesa mill with 7,000-8,000 metric tons per year of REE concentrate by as early as 2026.
Upon the completion of Phase 1 construction and commissioning, Energy Fuels and Astron plan to explore opportunities to ramp up production to 13,000-14,000 tons per year of REE concentrate, all of which will be forwarded to the White Mesa mill for further processing into REE oxides by Energy Fuels.
As part of the joint venture agreement, Energy Fuels has the option to invest up to A$183 million (approximately US$122 million) to acquire a maximum 49% stake in the collaboration. The company anticipates utilizing $10.6 million from its current working capital in 2024 and issuing $17.5 million in common shares to Astron.
If the investment decision receives a positive outcome within three years, Energy Fuels will proceed to invest the remaining balance of A$183 million required to secure a 49% interest in the JV, alongside issuing an additional $14 million in common shares to Astron.