Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) have completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands project.
The agreement was executed on June 4, and since then development activities at Donald have progressed, including work related to process plant engineering, auxiliary infrastructure, contract tendering and permitting and approvals.
Under the deal, Astron has received Energy Fuels shares with a current market value of US$3.5 million.
Energy Fuels has also provided an interest-free loan amounting to US$8.6 million to cover development costs dating from the execution of the joint venture to its effectivity. This has been converted into a roughly 3.2 percent equity stake in the joint venture, with Astron’s interest in the partnership currently standing at 96.8 percent.
Astron’s press release explains that Energy Fuels’ stake in the joint venture will eventually increase to 49 percent as it funds AU$183 million towards the execution and construction of the project’s first phase.
A rare earths concentrate offtake agreement with Energy Fuels is now also in effect. The company will receive 100 percent of Donald’s Phase 1 and Phase 2 rare earths concentrate output at commercial prices.
“The completion of the transaction represents another material step in bringing to life the globally significant, Tier-1 Donald resource,” Astron said on Thursday (September 26). “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.”
Both companies are now working to arrive at a final investment decision for Donald, likely in early 2025.
Earlier this month, Energy Fuels received approval from the Australia’s federal court to acquire Base Resources (ASX:BSE,OTC Pink:BSRUF) and develop another minerals sands project called Toliara.
Toliara’s Ranobe deposit has a mineral resource of 2.58 billion tonnes at 4.3 percent heavy minerals, while Donald has a mineral resource of 5.8 billion tonnes at an average heavy minerals grade of 3.2 percent.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.