Astron Corporation has finalised its agreements with US uranium miner Energy Fuels Inc to develop the Donald rare earths and mineral sands project in Victoria.
Originally announced on June 4, Astron executed farm-in, joint venture, and offtake agreements with Energy Fuels. The agreements will see Energy Fuels earn a 49 per cent stake in Donald by injecting $183 million in funding for the execution and construction of the project’s first phase.
As per the joint venture’s terms, the rare earths elements concentrate (REEC) offtake agreement with Energy Fuels for 100 per cent of the REEC production over Donald’s life is now in effect and Astron has been issued shares in Energy Fuels that are worth $US3.5 million.
A further $US14 million in Energy Fuels shares will be issued to Astron once a final investment decision for the first phase of Donald has been made.
The interest-free loan of $8.6 million, provided by Energy Fuels to cover Donald’s development costs from June 4 to September 26, has also been converted into an approximate 3.2 per cent equity in the joint venture.
“The completion of the transaction represents another material step in bringing to life the globally significant, Tier 1 Donald resource,” Astron said.
“It will signify the establishment of another western-rare earth mine to oxides value chain, and one that can come into production as soon as late 2026.”
Since June, several development activities for Donald have ramped up. These include process plant engineering, auxiliary infrastructure, tendering of key contracts for mining services, transport and logistics packages, and permitting and approvals.
“The parties are focused on advancing the project towards a positive final investment decision, which is now likely in early 2025,” Astron said.
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