Astron Corporation and Energy Fuels USA remain committed to globally significant rare earths project

Astron Corporation Ltd (ASX: ATR) and Energy Fuels Resources (USA) Inc. are aiming to jointly develop the Donald Rare Earths and Mineral Sands Project in regional Victoria.

The non-binding Memorandum of Understanding would see Energy Fuels earning a 49% interest in Astron’s MIN5532 and RL2002 tenements by investing A$180 million in the joint venture.

It would issue to Astron US$17.5m of Energy Fuels’ NYSE-listed parent company securities.

Donald Project

The Donald Project has the potential to become a globally significant, Tier One long-life supplier of critical rare earth elements.

These includeneodymium, praseodymium, dysprosium, and terbium as well as zirconium, hafnium and titanium minerals. It contains over 2.6 billion tonnes of Mineral Resources at 4.4% HM grade.

This represents an important new source of global supply at a time of growing demand and challenged supply.

The parties remain strongly committed to the joint venture and are progressing negotiations on definitive terms.

Astron has been involved in mineral sands processing, downstream product development, as well as the marketing and sales of zirconium and titanium-related products.

Funding

In November 2023, Astron completed a private placement of $10 million to the Company’s second-largest shareholder, Mr Tan Ruiqing, at $0.56 per CDI.

Astron booked $4.2 million of revenue for the December 2023 quarter from its operations.

 

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