Energy Fuels and Astron Corporation Limited Execute Definitive Agreements to Jointly Develop the Donald Rare Earth and Mineral Sands Project in Australia; Uranium Production from the Company’s U.S. mines and Alternate Feed Materials Continues to Ramp up as Planned
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Energy Fuels and Astron Corporation Limited Execute Definitive Agreements to Jointly Develop the
Donald Rare Earth and Mineral Sands Project in Australia; Uranium Production from the Company’s
U.S. mines and Alternate Feed Materials Continues to Ramp up as Planned
• The Donald Project is an advanced-stage project with the potential to supply approximately 7,000 –
14,000 tonnes of monazite sand in a rare earth element (“REE”) concentrate (“REEC”) per year to
Energy Fuels’ White Mesa Mill (the “Mill”), located in Utah, U.S.A., for processing into separated REE
oxides, as early as 2026.
• Under the joint venture, Energy Fuels has the right to invest A UD$183 million (approximately $122
million) and issue $17.5 million in Energy Fuels shares to earn up to a 49% interest in the project.
• Of these amounts, Energy Fuels expects to issue $3.5 million in Energy Fuels shares in 2024 and to
invest approximately $ 10.6 million in 2024 from its existing working capital (approximately $225
million at March 31, 2024) , prior to making a final investment decision to proceed with the
development of the first phase of the project . A positive final investment decision w ould require the
approval of both Energy Fuels and Astron and would generally require commitments for satisfactory
offtake and/or sales agreements for the REE oxides expected to be produced from REEC at the Mill, as
well as commitments for non-recourse and/or government-backed debt financing for the project.
• The REEC production of approximately 7,000 to 8,000 tonnes per year from the first phase of the
Donald P roject would be processed at the Mill’s recently constructed REE oxide separation circuit,
which is expected to be fully commissioned by the end of Q2 2024 and has the capacity to process up
to 10,000 tonnes of monazite sand per year into up to 1,000 tonnes of NdPr oxide per year, along with
a heavy mixed REE carbonate, without the need for any further capital expenditures at the Mill.
• During 2024 and 2025, t he Company also plans to continue to design, permit, and construct an
expansion of REE oxide production capacity at the Mill to 40,000 – 60,000 tonnes of monazite per year,
which is expected to be completed in 2027, and would have the capacity to process the second phase
of monazite production from the Donald Project of 13,000 to 14,000 tonnes of REEC per year, which
could be available as early as 2029/2030, as well as planned monazite production from the Company’s
Bahia Project in Brazil and the Company’s planned acquisition of the Toliara Project in Madagascar.
• The Company’s REE production initiatives will not diminish in any way the Company’s U.S. leading
uranium production capabilities, which are proceeding as planned. The Company expects to produce
approximately 150,000 to 500,000 pounds of uranium oxide (“U3O8”) in 2024 from its U.S. mines and
alternate feed materials ramping up to mining at a run-rate of approximately 1.1 million to 1.4 million
pounds of U3O8 per year later this year from three of its existing mines, with plans to increase mining
to the rate of approximately 2 million pounds of U3O8 per year by 2025 and up to 5 million pounds per
year in coming years if market conditions continue to be positive, as expected.
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LAKEWOOD, Colo., June 3, 2024 /CNW/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) ("Energy
Fuels" or the "Company" ), a leading U.S. producer of uranium, REEs, and vanadium, is pleased to
announce that it has executed binding agreements with Astron Corporation Limited (“Astron”) creating a
joint venture (the “Venture”) to develop and operate the Donald Rare Earth and Mineral Sands Project,
located in the Wimmera Region of the State of Victoria, Australia (the “Donald Project”). All references to
dollars or $ in this news release are references to US$ unless otherwise indicated.
The Donald Project is a world-class, world scale, REE and heavy mineral sand (“HMS”) deposit that has the
potential to provide Energy Fuels with a near-term, low-cost, and large-scale source of monazite sand in
an REE concentrate (“REEC”) that would be transported to the Company’s Mill in Utah, USA for processing
into REE oxides and other advanced REE materials to fuel the clean energy transition and meet critical U.S.
national security needs.
With most licenses and permits in place (or at an advanced stage of completion), the Donald Project is
expected to provide Energy Fuels with approximately 7,000 to 8 ,000 metric tons (“tonnes”) of REEC per
year (“Donald – Phase 1”), commencing as early as 2026. 8,000 tonnes of REEC from the Donald Project
would contain approximately 4,700 tonnes of total REE oxides (“TREO”), including roughly 990 tonnes of
neodymium-praseodymium (“ NdPr”) oxide, 84 tonnes of dysprosium (“ Dy”) oxide, and 14 tonnes of
terbium oxide(“Tb”).
Following the construction and commissioning of Donald – Phase 1, Energy Fuels and Astron will
evaluate increasing production from the Donald Project to 13,000 to 14,000 tonnes of REEC per year
(“Donald – Phase 2”), all of which would be delivered to the Mill for processing into REE oxides by
Energy Fuels. 14,000 tonnes of REEC from the Donald Project would contain up to 8,200 tonnes of TREO
per year, including 1,700 tonnes of NdPr oxide, 140 tonnes of Dy oxide and 25 tonnes of Tb oxide,
providing a rich source of critical rare earth elements necessary to meet the demand for electric
vehicles, clean energy and national security technologies.
NdPr, Dy, and Tb are known as the “magnet rare earths,” as they are key ingredients in powerful permanent
REE magnets used in the most efficient electric vehicles (“ EVs”), hybrids, wind generators, and other
defense-related and advanced technologies. Monazite concentrates typically have superior grades and
distributions of the “magnet” REEs compared to other REE-bearing minerals.
For context, REEs provide significantly greater power and range for EVs and hybrid vehicles, with the typical
REE-powered vehicle using about one kilogram (“ kg”) of NdPr oxide, along with roughly 50 grams of Dy
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and/or Tb oxide. Therefore, the Donald Project alone could supply enough of each of these critical
elements for up to 1.7 million EVs per year during Donald – Phase 2.
Construction and development of the Donald Project could begin as soon as 2025, subject to a unanimous
final investment decision (“FID”) of both Energy Fuels and Astron. A positive FID would generally require
Energy Fuels to have secured commitments for satisfactory offtake and/or sales agreements for the REE
oxides expected to be produced from REEC at the Mill, Astron having secured commitments for
satisfactory offtake and/or sales agreements for ilmenite and zircon expected to be produced from heavy
mineral sand concentrates (“HMC”) from the project, and the Venture having secured commitments for
non-recourse and/or government-backed debt financing for the project. Energy Fuels expects to spend
approximately $10.6 million to advance the Donald Project in 2024, which is expected to be funded from
the Company’s working capital (approximately $225 million as of March 31, 2024).
THE DONALD PROJECT
The Donald Project is a world-class, advanced-stage, large-scale critical mineral deposit underpinned by
the Ilmenite, zircon and monazite-rich Donald deposit in the Wimmera region of Victoria, Australia.
On June 27, 2023, Astron released the outcomes of its Phase 2 Pre-Feasibility study (the “2023 PFS”),
which expands upon its April 26, 2023 Definitive Feasibility Study ( the "2023 DFS") (see Note 1 ) for the
Donald Project. This combined, updated study estimates Donald – Phase 1 and 2 production of 200,000 –
500,000 tonnes per year HMC and 7,000 – 14,000 tonnes per year of REEC , and forecasts total funding
expenditures of AUD$392 million to achieve first production. An additional A UD$431 million in capital
would be required in 2029 or 2030 for the construction of Donald – Phase 2. According to the 2023 PFS,
the Donald deposit's estimated ore reserves of 825 million tonnes at 4.5% heavy mineral, are sufficient to
support an initial 58-year mine life at Donald – Phase 2 production rates of approximately 13,000 to 14,000
tonnes of REEC per year (See Note 2). Astron and the Company intend to update the 2023 DFS prior to
the Donald – Phase 1 FID, to take into account the most current information and to conform the report
to the standards of NI 43-101 and S-K 1300, as well as update the 2023 PFS to a DFS standard post-Donald
– Phase 1 production.
The Donald Project is expected to provid e a long -term and large -scale supply of REEC to the Mill for
processing into REE oxides and other advanced REE materials. As the REEC will be a byproduct of the
Donald Project’s ilmenite and zircon production, the total cost of production of REE oxides at the Mill is
expected to be low-cost and globally competitive.
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THE DONALD PROJECT JOINT VENTURE
Under the Venture, Energy Fuels has the right to invest AUD$183 million (approximately $122 million at
current exchange rates) to earn up to a 49% interest in the Venture. Of this amount, Energy Fuels expects
to invest approximately $10.6 million in 2024 from its existing working capital (approximately $225 million
as of March 31, 2024) , to be used by the Venture to update and expand the 2023 DFS and to otherwise
prepare the Venture to make a FID to proceed with the development of Donald – Phase 1. In addition,
Energy Fuels will issue to Astron Energy Fuels common shares having a total value of $17.5 million , of
which $3.5 million in shares will be issued to Astron or its subsidiaries on the date that all conditions
precedent to formation of the Venture are satisfied (the “Commencement Date”), which is expected to
be in Q3 or Q4 2024, and the remaining $14.0 million in Energy Fuels shares will be issued to Astron or its
subsidiaries on a positive FID.
If a positive FID is made by the Venturers within three years from the Commencement Date, then Energy
Fuels will proceed to expend the remaining balance of its AUD$183 million cash expenditure required to
earn into a 49% interest in the Venture plus issue the remaining $14.0 million in Energy Fuels common
shares to Astron or its subsidiaries at the time of the positive FID. If a positive FID is not made unanimously
within three years after the Commencement Date, but Astron has voted in f avor of the FID then Astron
would have the right to buy out Energy Fuels for the fair market value of Energy Fuels’ interest in the
Venture as at that date . If Astron does not exercise this option, or if there is otherwise no unani mous
positive FID within three years after the Commencement Date, Energy Fuels will remain a minority
member of the Venture (receiving a percentage interest based on the amount funded by Energy Fuels to
that date) and all future fund ing will be made by the Joint Venturers pro -rata in accordance with their
percentage interests in the Venture.
If a positive FID is made, Energy Fuels’ investment of A UD$183 million is expected to satisfy most of the
equity capital requirements for the construction of Donald – Phase 1. Any additional equity required post-
project financing will be shared by the Joint Venturers on a pro-rata basis.
Astron is the Manager and Operator of the Venture, with specified major decisions subject to approval of
both parties. After Energy Fuels has completed its investment of AUD$183 million, further Venture
expenditures for the development of Donald – Phase 1 and the development of Donald – Phase 2, would
be funded by Energy Fuels and Astron on a pro-rata basis.
Under the Venture, Energy Fuels has entered into an offtake agreement for 100% of the Donald Project’s
future Phase 1 and Phase 2 REEC production based on market prices of the contained REE oxides, subject
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to a floor price below which Energy Fuels would not be obligated to purchase REEC from the Venture. The
Venture will sell its HMC product to global customers, subject to Astron having the right, but not the
obligation, to enter into an offtake agreement with the Venture for up to 100% of the HMC product at
market prices. Following payment of all joint venture expenses, all profits from the Venture will be
distributed to Energy Fuels and Astron, pro-rata according to their respective ownership percentages. The
REEC offtake agreement may be terminated in certain circumstanc es by the Venture including if Energy
Fuels remains a minority member where Astron does not exercise the option to buy out Energy Fuels or if
there is otherwise no unanimous positive FID within three years after the Commencement Date, both as
described above.
As soon as practicable after commencing Donald – Phase 1 commercial production, the Venture would
expect to evaluate constructing Donald – Phase 2 which would be expected to double ore production to
15 million tonnes per year to produce approximately 400,000 to 500,000 tonnes per year of HMC and
approximately 13,000 to 14,000 tonnes per year of REEC , providing a consistent and significant feed for
decades to come. Capital expenditures for Donald – Phase 2 would be made pro-rata by the Joint Venturers
in accordance with their percentage interests in the Venture. The FID for Donald – Phase 2 would be made
by the agreement of both Joint Venturers.
The Venture agreements also grant Energy Fuels a first right of refusal over participation in the
development of Astron’s Jackson Deposit , which is contained in the tenement RL2003 and adjoins the
Donald Deposit to the south-west, should Astron plan to pursue such development with a third party.
REE SEPARATION AT THE WHITE MESA MILL
Energy Fuels is rapidly creating a significant new REE supply chain of world significance that can reduce
America’s reliance on REE’s from China. The Company is actively securing long -term and large -scale
sources of monazite sands to provide the raw materials needed to produce advanced REE materials at the
Mill through offtake (Chemours), joint venture (the Donald Project in Australia), and direct ownership (the
Bahia Mineral Sand Project in Brazil and the previously announced proposed acquisition of Base Resources
and the Toliara Mineral Sand Project in Madagascar). Through these assets, Energy Fuels is building a world
material REE oxide supply chain that the Company believes will be attractive to automotive, clean energy,
and government customers.
Further, Energy Fuels has demonstrated its ability to process monazite at its U. S. White Mesa Mill,
providing mixed REE carbonate to the market since 2022, and is currently commissioning a n REE
separation facility at the Mill which will allow for commercial scale REE separation in the United States.
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Energy Fuels completed construction of its Phase 1 REE Separation Circuit at the Mill in Q1-2024 for a total
cost of approximately $16 million, which has a current installed capacity to process up to 10,000 tonnes
of REEC per year and produce up to 1,000 tonnes of NdPr oxide per year along with a samarium plus
(“Sm+”) heavy mixed REE carbonate containing Dy and Tb . Final commissioning is expected by June 30,
2024, at which time the Phase 1 – REE Separation Circuit is expected to be fully operational and available
to process the Donald – Phase 1 REEC production, which is expected to commence in 2026 and total 7,000
to 8,000 tonnes of REEC per year. Energy Fuels does not need to finance or construct further expansions
of its Phase 1 – REE Separation Circuit to accommodate REEC from Donald – Phase 1.
The Company is also in the process of designing its Phase 2 REE Separation and Phase 3 REE Separation
Circuits at the Mill. The Phase 2 REE Separation Circuit, which is currently expected to be completed in
2027, subject to receipt of any required regulatory approvals and the Company securing sufficient supplies
of monazite sands, will consist of expanding NdPr oxide capacity to process 40,000 to 60,000 tonnes of
monazite sands per year and produce approximately 4,000 to 6,000 tonnes of NdPr oxide per year. The
Company also plans to construct a dedicated “crack -and-leach” circuit in conjunction with its Phase 2
Separation Circuit, in order to allow the Mill to simultaneously process conventional uranium ore and
monazite sands independently, thereby allowing for more efficient utilization of Mill capacity. The Phase
3 REE Separation Circuit, which is currently expected to be completed in 2028, subject to receipt of any
required regulatory approvals, will consist of installing the capacity to produce “heavy” RE E oxides,
including Dy, Tb, and potentially other oxides.
The Phase 2 REE Separation Circuit is expected to be completed in time to process the expected Donald –
Phase 2 production of approximately 13,000 to 14,000 tonnes of REEC per year, which could be available
by as early as 2029/2030 depending on market conditions, final design and permitting. The Phase 2 REE
Separation Circuit would also accommodate monazite production from the Company’s Bahia Project in
Brazil, which is currently in the exploration and permitting phase and which could be producing 3,000 –
10,000 tonnes of monazite per year as early as 2026; the Company’s planned acquisition of Base Resources
Limited and its Toliara heavy mineral sands project, if that acquisition is successful, which could add an
average of approximately 22,000 tonnes of monazite per year, subject to successful negotiation of an
investment agreement with the Madagascar government, the lifting of the current suspension relating to
the Toliara project, the receipt of additional permits for the recovery of Monazite at the Toliara project,
and other factors.
The Sm+ mixed heavy REE carbonate will either be sold in the international market as a mixed S m+ REE
carbonate or stockpiled at the Mill for processing into Dy and Tb oxides and potentially other heavy REE
oxides once the Phase 3 REE Separation Circuit is fully commissioned.
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The Company also continues to evaluate opportunities to enter the REE metal, alloy, and magnet-making
space, in order to fully-integrate the entire REE magnet supply chain.
ENERGY FUELS’ CONTINUED URANIUM PRODUCTION RAMP-UP:
Once the Phase 1 REE Separation Circuit commissioning is complete, which is expected by the end of Q2,
2024, the Company expects to begin processing stockpiled uranium ore from its three currently operating
U.S. mines and alternate feed materials for the remainder of 2024 and thereafter, from which the
Company expects to produce approximately 150,000 to 500,000 pounds of U 3O8 in 2024, ramping up to
mining at a run rate of approximately 1.1 million to 1.4 million pounds of U3O8 per year later this year from
those three mines. The Company expects to potentially increase its uranium production to a mining run
rate of approximately 2 million pounds of U3O8 per year by bringing two additional mines into operation
as early as 2025, and to a mining run rate of up to approximately 5 million pounds of U 3O8 per year over
the coming years by bringing our additional longer -term projects into operation, if uranium market
conditions continue to be strong, as expected.
The Company’s REE initiatives will not diminish in any way the Company’s U.S. leading uranium production
capabilities.
MARK S. CHALMERS, PRESIDENT AND CEO OF ENERGY FUELS STATED:
“Energy Fuels is truly excited to embark on this joint venture with Astron on the development and
operation of the Donald Project in Australia. We have enjoyed working with the Astron team, and we look
forward to making this world -class rare earth and critical mineral deposit a reality in Australia, which is
one of the closest allies of the U.S.
“I’ll add that the sequencing of our uranium, rare earth and mineral sand production ramp -ups is
proceeding extremely well in relation to commodity markets , while maximizing operating capacity and
workforce allocation at our White Mesa Mill. Uranium markets are currently gaining strength, and we have
long-term supply contracts to fulfill, so 2024 is a good year to ramp-up our low-cost uranium production.
At the same time, rare earth markets are currently soft. Therefore, 2024 is a good year to install and
commission REE processing capacity, design and plan additional REE processing capacity, and secure
mineral positions in this critical industry, such as through our Donald Project joint venture with Astron and
proposed acquisition of Base Resources. Assuming heavy mineral sand markets remain strong, and we are
able to secure satisfactory offtake agreements and financing, we look forward to beginning development
of the Donald Project as soon as 2025. We believe the Donald Project will be a ‘flagship’ mining project
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for Australia and the State of Victoria, producing many of the raw materials needed for the energy
transition.”
Note 1
The financial information relating to the Donald deposit's mineral sands is based on the 2023 PFS and 2023
DFS. These studies constituted a “Pre -Feasibility Study” and a "Feasibility Study," respectively, for the
purposes of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves, 2012 Edition ("JORC ") and the ore reserves underpinning these studies were estimated in
accordance with JORC. The results from these studies and the estimated ore reserves may not be
comparable to (as the case may be) data or estimates under either National Instrument 43 -101 ("NI 43-
101") or Subpart 1300 of Regulation S-K ("S-K 1300")– see disclosure below under "Qualified Person".
NOTE 2
The JORC estimate of ore reserves is presented for informational purposes only. A qualified person has not
done sufficient work to classify these estimates as current NI 43 -101 or S -K 1300 estimates of mineral
resources, mineral reserves, or exploration results. Energy Fuels is not treating these estimates as a current
estimate of mineral resources, mineral reserves, or exploration results – see note below under "Qualified
Person".
QUALIFIED PERSON
The technical information in this press release has been prepared in accordance with both U.S. and
Canadian requirements set out in S-K 1300 and NI 43-101 and reviewed on behalf of the Company by Dan
Kapostasy, VP , Technical Services of the Company, a Qualified Person under both S -K 1300 and NI 43-101
regulations. The JORC compliant Mineral Reserves contained herein were disclosed by Astron on 27 June
2023. The Company has not completed the necessary due diligence on the Mineral Reserves to disclose
them as current Mineral Reserves. Therefore, the Company is treating the contained tables as historical in
nature as a Qualified Person has not done sufficient work to classify the Mineral Reserves as current under
S-K 1300 or NI 43 -101. These historical Mineral Reserves are relevant to this disclosure, as they provide
information on the potential size and scale of MIN5532 and RL2002. The method used to estimate the in-
situ resources was ordinary kriging utilizing octant and ellipsoid search parameters. The mineralized zone
was domained into three zones: low grade, medium grade (>3% & <5%), and high grade (>5%) heavy
mineral. The block model used a 100 m x 2 00 m x 1 m block, which is approximately half the drillhole
spacing in the well drilled areas. The model was visually verified against drillholes, SWATH plots were used
to check average grade trends, and the current estimate is similar to previous estimate s. To convert the