Energy Fuels receives conditional approval for A$180M Donald project loans
Australian government lenders back part of a proposed A$200 million debt package, with commercial financing and final approvals still required.
Theo Marchetti
Energy Fuels Inc. TSEEFR NYSEAMERICANUUUU ASXEF2, listed on the Toronto Stock Exchange, reported conditional approval on Oct. 26 for up to A$180 million in Australian government loans for its Donald rare earths project. The commitments form part of a proposed A$200 million debt package, with a final investment decision targeted by the end of 2026.
Under the Oct. 26 terms, Export Finance Australia has conditionally approved up to A$70 million, while the National Reconstruction Fund Corporation has approved up to A$110 million. Commercial lenders are expected to provide the remaining A$20 million.
Completion requires definitive financing and project documentation, satisfactory due diligence, the remaining commercial debt and final approvals. Financial close also depends on customary conditions precedent, so the conditional approval does not establish that the money has been received.
On the Toronto Stock Exchange, TSEEFR closed at C$10.61, up 0.57 per cent, at 4 p.m. EDT on Oct. 26, according to Google Finance.
Debt Still Needs Documentation And Lenders
The Oct. 26 release values the government commitments at US$126 million. The government loans are expected to run for 10 years from financial close, with interest priced at BBSY plus an applicable margin.
The proposed financing would cover development, construction and commissioning, along with financing costs and operating expenses during ramp-up through project completion. The commercial portion remains part of the proposed package, rather than an additional government commitment.
The debt package and Energy Fuels' remaining equity contributions are separate funding requirements.
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"This financing milestone brings the Donald Project closer to an FID and strengthens the upstream foundation of our leading rare earth mine-to-magnet platform," Energy Fuels chief executive Ross Bhappu said in the release.
Project Equity Remains Separate
Energy Fuels said on Oct. 26 it had invested approximately A$60 million in the venture for a 15.3 per cent ownership interest. It must invest approximately A$86 million more and issue US$14 million in common shares to earn its full 49 per cent interest.
Its partner, Astron Limited ASXATR, identifies Donald as a joint venture with Energy Fuels, with rare earth concentrate destined for the White Mesa Mill in Utah.
The Oct. 26 announcement forecasts Phase 1 annual production averaging approximately 9,000 tonnes of rare earth concentrate and 225,000 tonnes of heavy mineral concentrate. These are planned outputs, rather than existing production.
Donald would supply monazite and xenotime containing light and heavy rare earths. Energy Fuels plans to process the concentrate at White Mesa, including separation into approximately 1,000 tonnes a year of neodymium-praseodymium oxide.
Energy Fuels expects commissioning of its new heavy rare earth circuits at White Mesa in early 2028, closely aligned with anticipated Donald concentrate production. The nearer milestone is the targeted final investment decision by the end of 2026, which would determine whether the company proceeds with development.
