Energy Fuels announced that it has received a conditional financing commitment for up to $725 million from the Department of War’s U.S. Office of Strategic Capital. The senior-secured debt financing is intended to support the expansion of Energy Fuels’ U.S. rare earths and critical materials production and processing capabilities.
Under the conditional commitment agreement, the Office of Strategic Capital would extend a $725 million loan to Energy Fuels with a 20-year tenor. The financing remains subject to additional due diligence, final agreements, customary closing conditions, and approvals.
Energy Fuels said the financing would support the planned expansion of its critical minerals processing capabilities at the White Mesa Mill in Utah, as well as a planned rare earth metals and alloy facility to be built in the United States.
The potential financing would also support infrastructure and capacity to process rare earth elements and other critical materials from Energy Fuels’ growing portfolio of domestic and international projects.
Energy Fuels is focused on uranium, rare earth elements, heavy mineral sands, vanadium, and other strategic materials. The company said the conditional financing would provide additional long-term capital flexibility as it advances its rare earths and critical materials initiatives.
The company’s rare earths strategy combines upstream mineral resources with U.S.-based midstream processing and separation capabilities. Energy Fuels said its White Mesa Mill provides a domestic processing platform, while its broader mineral asset portfolio and planned rare earth metal and alloy capabilities create a foundation for long-term growth.
Energy Fuels also noted that its planned acquisition of Australian Strategic Materials, subject to closing conditions including ASM shareholder approval, would add rare earth metal and alloy-making expertise and facilities in South Korea.
The company said the combined platform would support the development of reliable supply chains for materials used in defense, advanced manufacturing, energy, automotive, technology, and other strategic industries.
Energy Fuels intends to use proceeds from finalized financing to support eligible project development, processing capacity, supply chain integration, working capital, and other strategic priorities.
Energy Fuels has engaged Goldman Sachs as financial advisor and Akin Gump Strauss Hauer & Feld as legal counsel for the transaction.
KEY QUOTES:
“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.”
Ross Bhappu, President and Chief Executive Officer of Energy Fuels
“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.”
Ross Bhappu, President and Chief Executive Officer of Energy Fuels
