Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR), a U.S. producer of uranium, rare earth elements (REE), and vanadium, has announced the initiation of a non-binding Memorandum of Understanding (MOU) with Astron Corporation Limited (Astron). The agreement aims to collaborate on the development of the Donald Rare Earth and Mineral Sands Project situated in the Wimmera Region of Victoria, Australia (the “Donald Project”). The MOU outlines indicative commercial terms and grants Energy Fuels an exclusive period until March 1, 2024, enabling comprehensive due diligence and definitive agreement negotiations.
The Donald Project stands as a world-class and sizable critical mineral deposit that Energy Fuels anticipates will serve as another near-term, cost-effective, and large-scale source of monazite sand, resulting in a Rare Earth Element Concentrate (REEC). The REEC would be transported to Energy Fuels’ White Mesa Mill in Utah, USA, for processing into REE oxides and advanced REE materials, with the added benefit of uranium recovery. Energy Fuels’ disclosure of this non-binding MOU aligns with Astron’s obligation to report this information under applicable Australian Securities Exchange (ASX) regulations.
Given favorable U.S. government policies and an increasing focus on supply security among U.S. and European companies, Energy Fuels is actively forging a substantial REE supply chain to reduce America’s dependency on Chinese REEs. As part of this strategic initiative, the company is securing long-term REEC sources through off-take agreements (such as with Chemours), joint ventures (like the one with Astron), and direct ownership (such as the company’s 100%-owned Bahia Project in Brazil). Through these assets and potential future acquisitions, Energy Fuels is establishing a globally significant REE oxide supply chain that is poised to appeal to electric vehicle (EV) manufacturers and their primary suppliers.
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