Energy Fuels Receives $725 Million Conditional US Government Financing Commitment

• Energy Fuels Inc. has received a conditional commitment for up to $725 million of senior-secured debt from the US Department of War's Office of Strategic Capital (OSC), carrying a 20-year tenor, to support the expansion of rare earth element and critical materials processing capabilities at the White Mesa Mill in Utah and a planned rare earth metals and alloys facility to be constructed in the United States.
• The commitment is conditional on further due diligence, finalisation of agreements, customary closing conditions and approvals, with additional details on final terms and timing to be disclosed following completion of definitive documentation.
• Proceeds from the finalised financing are targeted by the company to support eligible project development, processing capacity, supply chain integration, working capital and other strategic priorities, consistent with the terms of the applicable financing arrangements.
• The conditional $725 million OSC commitment, together with other project-level financing discussions, is targeted to fund the White Mesa Mill rare earth element expansion and the planned US rare earth metals and alloys facility.
• Energy Fuels has engaged Goldman Sachs & Co. LLC as financial advisor and Akin Gump Strauss Hauer & Feld LLP as legal counsel for the transaction.

Company Overview

Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) is a US-based critical materials company focused on uranium, rare earth elements, heavy mineral sands, vanadium and medical isotopes. The company owns and operates conventional and in-situ recovery uranium projects in the western United States and, per its most recently filed Annual Report on Form 10-K, has been the leading US producer of natural uranium concentrate for the past several years, supplying nuclear utilities for carbon-free nuclear energy production. Energy Fuels also owns the White Mesa Mill in Utah, the only fully licensed and operating conventional uranium processing facility in the United States, where it also produces advanced rare earth element products and vanadium oxide when market conditions warrant. The company is developing 3 heavy mineral sands projects: the 100%-owned Vara Mada Project in Madagascar, the 100%-owned Bahia Project in Brazil, and the Donald Project in Australia, in which it has the right to earn up to a 49% interest in a joint venture with Astron Limited.

Financing Commitment Overview

Energy Fuels Inc. has received a conditional commitment for up to $725 million of senior-secured debt from the US Department of War's Office of Strategic Capital (OSC), carrying a 20-year tenor. Under a commitment agreement subject to further due diligence, finalisation of agreements, customary closing conditions and approvals, the OSC would extend to Energy Fuels a $725 million loan to fund the planned expansion of critical minerals processing capabilities at the White Mesa Mill in Utah and a planned rare earth metals and alloys facility to be constructed in the United States.

Proceeds from the finalised financing are targeted to support eligible project development, processing capacity, supply chain integration, working capital and other strategic priorities, consistent with the terms of the applicable financing arrangements. Energy Fuels has engaged Goldman Sachs & Co. LLC as financial advisor and Akin Gump Strauss Hauer & Feld LLP as legal counsel for the transaction.

President and Chief Executive Officer of Energy Fuels Inc., Ross Bhappu, commented on the OSC commitment's alignment with the company's objective to build a vertically integrated US rare earth element supply chain: 

"This important financing support from key investors aligns with Energy Fuels' objective to be a vital player in the rare earths supply chain. The United States government has been steadfast in its support of critical materials security, and we appreciate the OSC's financial support at this important time as we develop our vertically integrated supply chain."

Rare Earth Element Strategy & Australian Strategic Materials Acquisition

Energy Fuels' rare earth element strategy pairs upstream mineral resources with midstream processing and separation capabilities at the White Mesa Mill in Utah, the only fully licensed and operating conventional uranium processing facility in the United States. The company has a planned acquisition of Australian Strategic Materials Limited (ASM), subject to ASM shareholder approval and other closing conditions. ASM holds existing rare earth metal and alloy-making expertise and facilities in South Korea, adding downstream metals and alloys production to Energy Fuels' processing platform.

The conditional $725 million OSC financing, together with other project-level financing discussions, is targeted to fund White Mesa Mill capacity expansion and the planned US rare earth metals and alloys facility.

Bhappu further commented on the supply chain rationale underpinning the OSC financing and the ASM acquisition: 

"Recent events have underscored the urgency of building durable, transparent and allied supply chains for critical materials. Energy Fuels is strategically positioned to lead that objective, with deep technical expertise and a strategy that encompasses multiple links on the critical materials value chain. We are proud to play a role in strengthening industrial resilience and supporting the long-term security and competitiveness of the United States and its allies."

Next Steps

Energy Fuels is targeting disclosure of additional details regarding the proposed financing, including final terms and timing, following the completion of definitive documentation. The conditional OSC commitment remains subject to further due diligence, finalisation of agreements, customary closing conditions and approvals. The planned acquisition of ASM remains subject to ASM shareholder approval and other closing conditions.

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