Energy Fuels & Astron Secure A$80 Million Conditional Financing Support for Donald Rare Earth Project

• Export Finance Australia has issued a conditional Letter of Support for up to A$80 million in senior debt financing for the Donald Rare Earth and Mineral Sands Project, marking a significant milestone in the project's A$520 million total funding requirement.
• The Donald Project targets production of 7,200 tonnes per annum of rare earth element concentrate containing critical materials including 1,000 tonnes of NdPr oxides, 92 tonnes of Dysprosium oxide, and 16 tonnes of Terbium oxides annually.
• Energy Fuels will process 100% of the Donald Project's rare earth concentrate at its White Mesa Mill in Utah under a life-of-mine offtake agreement, with the facility having current capacity to handle all Phase 1 production.
• The project's heavy rare earth output is expected to satisfy approximately one-third of U.S. demand for Dysprosium and one-quarter of U.S. demand for Terbium, both critical elements for clean energy, defense, and advanced manufacturing applications.
• Production is planned to commence in the second half of 2027, subject to securing full project financing and completion of a positive final investment decision, with the joint venture targeting a 50:50 debt-to-equity gearing ratio.
  
  

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) and Astron Limited (ASX: ATR) have announced receipt of a conditional Letter of Support from Export Finance Australia for up to A$80 million in senior debt financing for the Donald Rare Earth and Mineral Sands Project. Energy Fuels is a leading U.S.-based critical minerals company with processing capabilities at its White Mesa Mill in Utah, while Astron is an Australian mineral sands company with over 35 years of operating history in zirconium and titanium product development. The development represents a strategic initiative to establish Western-aligned rare earth supply chains as global demand for critical minerals intensifies, particularly for heavy rare earth elements essential to defense and clean energy technologies.

The financing milestone comes as Western nations seek to reduce dependence on concentrated rare earth supply chains and establish domestic processing capabilities for materials critical to national security and economic competitiveness. The Donald Project's positioning within this strategic context, combined with its advanced development status and established offtake arrangements, provides investors with exposure to government-supported critical minerals infrastructure development.

Project Financing Structure & Export Finance Australia Support

The conditional Letter of Support from Export Finance Australia, dated October 21, 2025, represents potential senior debt financing of up to A$80 million toward the Donald Project's estimated A$520 million total funding requirement. The joint venture partnership between Energy Fuels and Astron is targeting a 50:50 debt-to-equity gearing ratio for project financing.

Export Finance Australia is Australia's export credit agency, providing commercial finance for export trade and overseas infrastructure development. The agency administers the Australian Government's National Interest Account, which includes the Critical Minerals Facility designed to support strategic resource development. The Letter of Support is subject to satisfactory completion of due diligence, including financial, technical, environmental, and social assessments, as well as credit, risk and legal approvals, and compliance with applicable laws and regulations.

Astron Managing Director Tiger Brown stated: 

"The conditional and non-binding Letter of Support from EFA highlights the strategic role the Project plays in the diversification of critical mineral supply chains. It marks a key milestone in our pathway to development of the Donald Project and the tangible progress we are making toward establishing a world-class rare earth operation in Australia."

The joint venture is working with other Export Credit Agencies and senior lenders to confirm the syndicate that will provide the complete project financing facility. This multi-source debt financing approach is common for large-scale mining projects, allowing developers to diversify funding sources and optimize financing terms across different institutional lenders and government-backed agencies.

Comprehensive Funding Strategy

Beyond the Export Finance Australia commitment, the Donald Project's financing structure incorporates multiple equity and debt components designed to achieve full funding for development and construction activities.

Energy Fuels has committed to a staged equity investment of up to A$183 million, with A$45 million expected to be contributed prior to final investment decision and A$138 million expected post-FID. These contributions will provide capital for pre-development activities and construction implementation.

Additional pro-rata equity contributions by the joint venture partners on a 51:49 basis amount to A$122 million in post-FID contributions, of which Astron's share would be approximately A$62 million and Energy Fuels' share would be approximately A$60 million. The project's total funding requirement of A$520 million includes capital expenditures, start-up working capital, and A$44 million of indicative finance costs, fees, interest during construction, and funding reserves.

Astron is working with debt advisor ICA Partners on arranging the remaining debt funding for the Donald Project. The company maintains advanced ongoing engagement with other government agencies and commercial banks to secure the balance of debt financing beyond the Export Finance Australia commitment.

The financing activities are being progressed in parallel with early site works and sourcing and procurement of long-lead time equipment, indicating the project's advancement toward construction readiness pending final funding closure and investment decision.

Production Profile & Rare Earth Output

The Donald Project's Phase 1 production profile targets output of materials critical to multiple high-value industrial applications, with particular emphasis on heavy rare earth elements that represent supply chain vulnerabilities for Western economies.

When operational, Phase 1 is expected to produce an average of 7,200 tonnes per annum of rare earth element concentrate containing both light and heavy rare earths. This production includes up to 1,000 tonnes of Neodymium-Praseodymium oxides, 92 tonnes of Dysprosium oxide, and 16 tonnes of Terbium oxides annually.

The Dysprosium and Terbium output holds particular strategic significance, with the project's heavy rare earth production expected to satisfy approximately one-third of U.S. demand for Dysprosium and one-quarter of U.S. demand for Terbium. These elements are critical to permanent magnets used in electric vehicle motors, wind turbine generators, defense systems, and advanced manufacturing applications.

Energy Fuels CEO Mark Chalmers commented: 

"The conditional and non-binding Letter of Support from EFA is a strong vote of confidence for the Donald Project and its role in supporting global critical minerals supply chains. This is a key additional step in our financing pathway and reflects our on-going progress toward delivering one of Australia's most important rare earth projects, including valuable NdPr, and exceptional concentrations of Dy, Tb and other 'heavy' rare earth oxides, which upon project development will be processed and separated into high-purity products at our White Mesa Mill in Utah."

Beyond rare earth production, the Donald Project will also produce zircon-rich heavy mineral concentrates for global supply chains, providing additional revenue streams from zirconium and titanium materials used in ceramics, refractories, and other industrial applications.

Processing Infrastructure & Offtake Arrangements

The Donald Project benefits from established processing infrastructure and firm offtake commitments that reduce market risk and provide production certainty for investors. Energy Fuels has secured 100% of the project's rare earth element concentrate production under a life-of-mine offtake agreement, ensuring long-term revenue stability for the Donald operation.

Energy Fuels' White Mesa Mill in Utah has current capacity to process all of the Donald Project's Phase 1 rare earth concentrate production and extract both light and heavy rare earth elements. The facility currently has capacity to produce up to 1,000 tonnes of separated NdPr oxide, matching the Donald Project's expected NdPr production profile.

Energy Fuels expects to commission capacity to produce separated Dysprosium, Terbium, and potentially other heavy rare earth oxides as soon as late 2026, ahead of the Donald Project's planned production commencement in the second half of 2027. This timeline alignment positions the processing infrastructure to receive and process Donald concentrate immediately upon production startup.

The integrated supply chain from Australian mining through U.S. processing represents a vertically coordinated approach to rare earth production within allied nations, addressing Western government priorities for supply chain security in critical minerals. This strategic positioning may provide additional support for project financing and potentially create opportunities for government offtake agreements or strategic stockpiling arrangements.

Resource Base & Project Scale

The Donald Project is located in Victoria's Murray Basin near Minyip and Donald and features a substantial resource scale that supports long-term production economics. The project holds a total mineral resource of 1.81 billion tonnes with a planned mine life exceeding 58 years across two phases.

This extended mine life provides operational longevity that differentiates the Donald Project from shorter-duration rare earth developments and creates potential for expansion beyond Phase 1 production parameters. The project is characterized as shovel-ready and is described as one of Australia's most advanced critical mineral projects, indicating completion of permitting, engineering, and pre-development activities necessary for construction commencement.

The project's mineral output will include zirconium, titanium, and rare earth elements, including neodymium, praseodymium, terbium and dysprosium. This diversified production profile provides revenue resilience across multiple commodity markets rather than sole dependence on rare earth pricing.

Donald Mineral Sands, the joint venture entity developing the project, has committed to responsible land use, progressive rehabilitation, and long-term economic contribution to regional Victoria, addressing environmental and social governance considerations relevant to institutional investors and project financing sources.

Strategic Context & Supply Chain Implications

The Donald Project's development occurs within a broader geopolitical context of Western efforts to establish independent critical minerals supply chains. Global rare earth production and processing remain concentrated in China, which controls approximately 60% of mining and over 90% of processing capacity for these materials.

The establishment of Australian mining operations coupled with U.S. processing capabilities creates an allied-nation supply chain for materials essential to defense systems, clean energy technologies, and advanced manufacturing. This alignment with government strategic priorities has attracted support from Export Finance Australia's Critical Minerals Facility and positions the project for potential additional government backing.

The concentration of heavy rare earth production capability holds particular strategic value, as these elements face more severe supply constraints than light rare earths and command premium pricing in global markets. Dysprosium and Terbium are essential for high-performance permanent magnets that enable miniaturization and efficiency improvements in electric motors and generators.

Production commencement targeted for the second half of 2027, subject to final investment decision and full financing closure, positions the Donald Project to supply markets during a period of anticipated supply-demand tightening as electric vehicle adoption accelerates and defense modernization programs increase rare earth consumption.

For Investors

For investors evaluating Energy Fuels and Astron, the Donald Project represents a large-scale capital commitment with extended development timelines and exposure to rare earth market dynamics. The conditional nature of the Export Finance Australia Letter of Support indicates that project financing remains subject to completion of due diligence processes and final credit approvals.

The A$520 million total funding requirement represents substantial capital deployment for both joint venture partners, with Astron's equity contribution requirements totaling approximately A$107 million across pre-FID and post-FID periods based on the pro-rata ownership structure. Energy Fuels' staged equity commitment of up to A$183 million plus additional pro-rata contributions totaling approximately A$60 million represents material capital allocation from the company's balance sheet.

Project execution risks include securing the remaining debt financing beyond Export Finance Australia's conditional commitment, completing final investment decision processes, managing construction timelines and costs, and commissioning operations to achieve nameplate production rates. The parallel development of heavy rare earth separation capacity at White Mesa Mill by late 2026 creates additional technical execution requirements for the integrated supply chain.

Market risks include rare earth pricing volatility, particularly for heavy rare earth elements which trade in relatively illiquid markets with pricing influenced by Chinese export policies and global supply-demand balances. The life-of-mine offtake agreement with Energy Fuels provides production certainty but concentrates market exposure within the joint venture partnership structure.

The project benefits from government strategic support, established processing infrastructure, substantial resource scale, and positioning within allied supply chain development priorities. These factors provide differentiation relative to earlier-stage rare earth development projects and may support financing completion and operational execution as the project advances toward final investment decision and construction commencement.