Astron Corporation has officially teamed up with United States-based Energy Fuels to develop its Donald rare earths and mineral sands project in Victoria after executing a binding farm-in and joint venture (JV) agreement.
The two companies have agreed to a revised timeline for the project, with a financial investment decision expected before the end of the year and first production scheduled as soon as 2026. The operation’s total resource across both its Donald and Jackson deposits sits at a whopping 2.63 billion tonnes grading 4.4 per cent heavy minerals (HM).
Astron Corporation has delivered an impressive resource at its Donald rare earths and minerals sands project in Victoria.
According to the agreement, Energy Fuels will kick in $183 million towards the first-phase development of the project and will also issue $US17.5 million (AU$26.2 million) worth of its shares to Astron to take a 49 per cent interest in the JV. Astron will retain a 51 per cent share and manage the operation.
The share plan will consist of two tranches, with the first $US3.5 million (AU$5.24 million) worth of stock to be issued once effective conditions are satisfied and then a further US$14 million (AU$20.97 million) package to be delivered after a final investment decision has been approved.
‘In Energy Fuels, we have found a joint venture partner that shares our values, our goals and focus.’
Astron Corporation managing director Tiger Brown
As part of the initial mining phase, the JV will mine 7.5 million tonnes of ore per year to produce about 250,000 tonnes per annum of HM concentrate and about 7000 to 8000 tonnes per year of rare earths concentrate for 41.5 years. The second phase of mining is expected to see those figures double to 15 million tonnes mined each year to produce between 400,000 and 500,000 tonnes of HM concentrate and 13,000 to 14,000 tonnes of rare earths concentrate per annum.
The rare earths will be processed at Energy Fuels’ White Mesa facility in Utah – the only commercial rare earths processing plant in North America capable of producing advanced products from the materials. Astron will have the right to enter into an offtake agreement for 100 per cent of the project’s heavy minerals concentrate for processing at its mineral separation plant in Yingkou.
Management says its processing plan aligns with the Australian Government’s Critical Minerals Strategy and the US Inflation Reduction Act.
Astron Corporation managing director Tiger Brown said: “In Energy Fuels, we have found a joint venture partner that shares our values, our goals and focus, one that strongly complements our mineral sands experience and aspirations with their own rare earth experience and strategy. We look forward to a long and productive relationship with our new partner to collectively bring to life what, in Donald, is one of the world’s most significant critical mineral resources and delivering value to our respective security holders and stakeholders.”