Export Finance Australia issues Conditional Letter of Support for the Donald Project
Export Finance Australia issues Conditional Letter of Support for
the Donald Project
DENVER
,
Oct. 20, 2025
/CNW/ - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (
Energy Fuels
) and Astron Limited (ASX: ATR)
(
Astron
) are pleased to announce that they have received a non-binding and conditional Letter of Support from Export Finance
Australia (
EFA
) (dated
21 October 2025
), for up to
A$80 million
in respect of senior debt project financing for the development of the Donald
Rare Earth and Mineral Sands Project (
Donald Project
). The Donald Project total funding requirement is estimated to be A$520mm based on
the latest project parameters released in
July 2025
, The joint venture is targeting a 50%: 50% debt-to-equity gearing ratio and is working with
other Export Credit Agencies and senior lenders to confirm the syndicate that will provide the project financing facility for the Donald Project.
EFA is
Australia's
export credit agency, providing commercial finance for export trade and overseas infrastructure development. The EFA
Letter of Support is subject to the satisfactory completion of due diligence, including financial, technical, environmental, and social
assessments, as is customary for facilities of this nature, credit, risk and legal approvals, and compliance with applicable laws and regulations.
The letter represents a key milestone in progressing the Project's debt financing plan and complements Astron's and Energy Fuels' broader
funding initiatives, including the Donald Project Joint Venture equity funding.
The shovel ready Donald Project is one of
Australia's
most advanced critical mineral projects, targeting the production of rare earth elements
(
REEs
), which are expected to be shipped to Energy Fuels' mineral processing facility in the U.S. for production of advanced REE materials,
and zircon-rich heavy mineral concentrates for global supply chains. Production is planned to commence as early as H2 2027, subject to
securing project financing and completion of a positive final investment decision (
FID
) for the Project.
With 100% of the Project's Rare Earth Element Concentrate (
REEC
) subject to a life-of-mine offtake agreement with Energy Fuels, the Donald
Project, once developed and brought into production, will strengthen global supply chain resilience for Western and partner nations.
When in production, Phase 1 of the Donald Project is expected to produce on average 7.2 thousand tonnes (
ktpa
) of REEC per annum
containing both light and highly strategic heavy rare earths, including up to 1,000t of Neodymium-Praseodymium (
NdPr
) oxides, 92t of
Dysprosium (
Dy
) oxide, and 16t of Terbium (
Tb
) oxides per year. Energy Fuels' White Mesa Mill (
Mill
) in
Utah, USA
has the current capacity
to process all of the Donald Project's Phase 1 REEC production and extract the light and heavy REEs. The Mill also has the current capacity to
produce up to 1,000t of separated NdPr oxide, and Energy Fuels expects to commission the capacity to produce separated Dy, Tb, and
potentially other heavy REE oxides as soon as late 2026.
Notably, the heavy rare earths expected to be produced from Donald Phase 1 would satisfy approximately one third of U.S. demand for Dy
and a quarter of U.S. demand for Tb, elements that are critical to the clean energy, defence and advanced manufacturing industries.
The financing activities are being progressed in parallel with early site works and sourcing and procurement of long-lead time equipment.
Astron Managing Director, Tiger Brown, said:
"The conditional and non-binding Letter of Support from EFA highlights the strategic role the Project plays in the diversification of critical
mineral supply chains. It marks a key milestone in our pathway to development of the Donald Project and the tangible progress we are making
toward establishing a world-class rare earth operation in
Australia
."
Energy Fuels CEO,
Mark Chalmers
, said:
"The conditional and non-binding Letter of Support from EFA is a strong vote of confidence for the Donald Project and its role in supporting
global critical minerals supply chains. This is a key additional step in our financing pathway and reflects our on-going progress toward
delivering one of
Australia's
most important rare earth projects, including valuable NdPr, and exceptional concentrations of Dy, Tb and other
'heavy' rare earth oxides, which upon project development will be processed and separated into high-purity products at our White Mesa Mill in
Utah
."
Broader Financing Strategy
The conditional and non-binding Letter of Support from EFA complements the companies' broader financing strategies for the Donald Project,
which includes:
Advanced ongoing engagement with other government agencies and commercial banks to secure the balance of the debt financing.
A staged equity investment of up to
A$183 million
from Energy Fuels, of which
A$45 million
is expected to be contributed prior to FID and
A$138 million
is expected to be contributed post-FID, providing capital for pre-development and construction activities.
Pro-rata equity contributions by the joint venturers on a 51%/49% basis amounting to additional post-FID contributions of
A$122 million
(of
which Astron's share would be
~A$62 million
and Energy Fuels' share would be
~A$60 million
).
These financing arrangements collectively represent material progress toward securing full funding for the development of the Donald Project.
Based on the revised project economic parameters, which were announced on
23 July 2025
, the Project's indicative forecast total funding
requirement is
A$520 million
(in nominal terms) including capital expenditures and start-up working capital, as well as
A$44 million
of indicative
finance costs, fees and interest during the construction period, and funding reserves, based on targeting a base case 50%:50% debt-to equity
ratio.
Astron will continue to work with its debt advisor, ICA Partners, on the arrangement of debt funding for the Donald Project.
This announcement is authorised for release by the Managing Director of Astron and CEO of Energy Fuels.
About Donald Project
The Donald Project, in
Victoria's
Murray
Basin near Minyip and Donald, is expected to be a globally significant source of critical minerals. The
Project features a total mineral resource of 1.81 billion tonnes with a planned mine life greater than 58 years over two phases. It will produce
zirconium, titanium, and rare earth elements, including neodymium, praseodymium, terbium and dysprosium, which support technologies vital to
clean energy, defence, and advanced manufacturing. Astron Limited and US critical minerals company Energy Fuels Inc. have formed a joint
venture, known as Donald Mineral Sands (DMS), which is developing the project. DMS is committed to responsible land use, progressive
rehabilitation, and long-term economic contribution to regional Victoria.
About Astron
Astron Limited (ASX: ATR) is an Australian-based company listed on the ASX. With over 35 years of operating history, Astron has been
involved in mineral sands processing, downstream product development, and the marketing and sales of zirconium and titanium related
products. Astron's prime focus is the development of its large, long-life Donald Rare Earth and Mineral Sands Project in regional
Victoria,
Australia
. In addition to its Australian assets, the Company also conducts a mineral sands trading operation.
About Export Finance Australia
Export Finance Australia (EFA) is
Australia's
export credit agency. EFA provides commercial finance for export trade and overseas
infrastructure development. From small and medium-sized enterprises to large corporates and infrastructure projects, EFA helps Australian
businesses take on the world. In doing so, EFA's finance supports
Australia's
economic security and resilience.
EFA administers the Australian Government's National Interest Account, which currently includes the Southeast Asia Investment Financing
Facility, Critical Minerals Facility, the Defence Export Facility and lending for the Australian Infrastructure Financing Facility for the Pacific.
About Energy Fuels
Energy Fuels is a leading U.S.-based, global critical minerals company, focused on uranium, rare earth elements, heavy mineral sands,
vanadium and medical isotopes. The Company owns and operates several conventional and in-situ uranium projects in the western U.S., as
well as the White Mesa Mill, which is the only operating conventional uranium mill in the U.S. The Mill also houses the Company's commercial-
scale rare earth processing circuits. Additionally, Energy Fuels is developing heavy mineral sand projects around the world to supply titanium
and zirconium minerals to global markets, along with rare earth concentrates to the Mill for processing into separated rare earth oxides.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of
applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any
expectation that all conditions will be satisfied and that the non-binding and conditional Letter of Support from EFA will become a binding
commitment of EFA; any expectation that the Donald Project will be successful in arranging all required project financing; any expectation
that a positive FID will be made for the Donald Project as early as H2 2027 or at all; and any expectation that the Donald Project will be
successfully developed and will produce as expected.
Generally, these forward-looking statements can be identified by the use of forward-
looking terminology such as "plans", "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts,"
"intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or
results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than
statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the companies or their
projects to be materially different from any future results, performance or achievements express or implied by the forward-looking
statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include
risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and
delays; and the other factors described in the companies' public disclosure documents. Forward-looking statements contained herein are
made as of the date of this news release, and Energy Fuels and Astron disclaim, other than as required by law, any obligation to update any
forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or
opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place
undue reliance on forward-looking statements. Energy Fuels and Astron assume no obligation to update the information in this
communication, except as otherwise required by law.
Astron Corporation (CNW Group/Energy Fuels Inc.)
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For further information:
For further information, contact: Kim Casey, Manager of Investor Relations, +1 303 842 5122,
[email protected]; Tiger Brown, Managing Director, +61 3 5385 7088, [email protected]; Joshua Theunissen, Australian
Company Secretary, +61 3 5385 7088, [email protected]
CO: Energy Fuels Inc.
CNW 20:22e 20-OCT-25