Donald Rare Earth and Mineral Sands Project Achieves Major Government Financing Milestone

Energy Fuels Inc. (EFR) announced that Export Finance Australia (EFA) and the National Reconstruction Fund Corporation (NRFC) have conditionally approved a combined commitment of up to A$180 million (US$126 million) toward a proposed A$200 million senior project finance debt facility. This funding supports Phase 1 of the Donald Rare Earth and Mineral Sands Project in Victoria, Australia. The financing structure allocates up to A$70 million from EFA, up to A$110 million from the NRFC, and the remaining A$20 million from commercial lenders. The facility carries a 10-year tenor from financial close, with interest set at BBSY plus an applicable margin. These approvals remain conditional on definitive documentation, satisfactory due diligence, securing the commercial tranche, and final regulatory approvals.

The company stated that a final investment decision (FID) is now targeted for the end of 2026. This timeline represents a deferral from previous guidance; the Q2-2026 MD&A and a June 23, 2026 VAC release had indicated an FID by early Q3 2026, while the Feb 26, 2026 annual release suggested it could occur in Q1 2026. The Donald project, located 300 km northwest of Melbourne, is fully permitted and shovel ready. It operates as a joint venture with Astron Limited and is expected to have a 40-year mine life. Phase 1 production is projected to average approximately 9,000 tpa of rare earth element concentrate (REEC) and 225,000 tpa of heavy mineral concentrate (HMC).

Under the offtake structure, Energy Fuels Inc. will purchase 100% of the REEC, while Astron will buy 100% of the HMC. Energy Fuels is funding the first A$183 million (US$127 million) of upfront equity to earn a 49% interest. The company has invested approximately A$60 million (US$41 million) to date for a 15.3% interest and must invest a further approximately A$86 million (US$60 million) in cash plus issue common shares worth US$14 million.

The downstream processing chain involves transporting the approximately 9,000 tpa of REEC to the White Mesa Mill, which has a 10,000 tpa REEC capacity and produces 1,000 tpa of NdPr. The mill’s terbium/dysprosium circuits, producing 21 tpa of Tb and 122 tpa of Dy, are scheduled to be commissioned in early 2028. Oxides will then be sent to the Korean Metals Plant, which produces 1,300 tpa of NdFeB alloy and is expanding to 3,600 tpa, as well as a planned American Metals Plant. The resulting alloy will go to Vacuumschmelze (VAC) magnet plants with approximately 3,500 tpa capacity, with VAC’s closing expected in Q1 2027. The release claims Donald REEC would supply approximately 75% of the Korean Metals Plant’s expanded capacity and approximately 77% of VAC’s existing capacity.

These Australian commitments are in addition to the conditional US$725 million OSC loan commitment received in June 2026, meaning the project now has two large government facilities, both still subject to conditions.

Energy Fuels Inc. (EFR) disclosed that the Northern Resource Finance Corporation (NRFC) will serve as a lender, a development that expands upon previously disclosed Australian government letters of support. The company confirmed that A$180 million of the A$200 million conditional package, representing 90% of the total, is now covered by two Australian government institutions with a 10-year tenor. Previously, only EFA letters of support for more than A$200 million had been disclosed, with A$80 million specified for Donald.

The Donald project remains fully permitted and shovel-ready, a status known since January 2026. The 49% earn-in mechanics, the approximately 9,000 tonnes per annum REEC figure, and the mine-to-magnet integration map have all been published repeatedly. This announcement serves largely as a reaffirmation of the project’s status with the addition of a new co-lender.

The final investment decision (FID) has slipped again, moving from Q3 2026 to end-2026. The release conceded that the A$20 million commercial tranche, definitive documentation, due diligence, and guarantee facilities remain outstanding. Financing is a necessary but not sufficient condition to FID, and the offtake coordination issue flagged on the Q1 call is not addressed.

Shares closed at $10.55 on Oct 23, 2026, and $10.61 on Oct 26, 2026, reflecting a +0.6% reaction. The market did not treat the announcement as new information.

Energy Fuels Inc. (EFR) is a US-based critical materials company with operations and projects spanning uranium, rare earth elements, and heavy mineral sands. The company operates the White Mesa Mill in Utah, the only licensed and operating conventional uranium mill in the United States, which also handles rare earth processing and separation. Its uranium portfolio includes the Pinyon Plain project in Arizona, the La Sal complex in Utah, and several in-situ recovery sites including Nichols Ranch, Whirlwind, Roca Honda, Sheep Mountain, and Bullfrog. Internationally, the company holds heavy mineral sands and monazite projects in Australia’s Donald joint venture, Madagascar’s Vara Mada/Toliara, and Brazil’s Bahia.

In August 2026, Energy Fuels added rare earth element downstream capabilities through the acquisition of ASM. This transaction included the operating Korean Metals Plant in Ochang, which produces 1,300 tonnes per annum of NdFeB alloy and is expanding to 3,600 tonnes per annum, the planned American Metals Plant, and the Dubbo project in New South Wales. The company is also pending the approximately $1.9 billion equity-value acquisition of Vacuumschmelze, which owns magnet plants in Sumter, South Carolina; Hanau, Germany; Ulvila, Finland; Horna Streda; Shenyang; and Pekan. This deal is expected to close in the first quarter of 2027.

Energy Fuels is listed on the NYSE American under the ticker UUUU, the TSX under EFR, and the ASX via CDIs under EF2. The company is headquartered near Denver, Colorado. Ross Bhappu assumed the role of CEO from Mark Chalmers on April 15, 2026.