US partner’s US$700m raise sets up Astron for rare earths development

• Astron holds the advanced Donald rare earths project in joint venture with US critical minerals heavyweight Energy Fuels
• Energy Fuels CEO confirms $700m fundraising will accelerate REE initiatives including Donald development
• US reportedly looking to invest in Australian development-ready projects to secure its critical minerals supply chain

Critical minerals are front and centre of US policy at it seeks to secure supply chains, so it comes as no surprise that Australia is emerging as a preferred supplier.

Prime Minister Anthony Albanese has flagged the potential to offer the US priority access to Australia’s strategic stockpile of critical minerals, while resource company bosses report the US is looking to invest in development-ready projects.

Australia is seen as a reliable ally with a strong mining jurisdiction and advanced projects that could enable the US to break free of its dependence on critical minerals sourced from China.

Evidence of this can be seen in moves made by the US Export-Import Bank (EXIM) which agreed in June 2025 to finance private Australian company RZ Resources’ Copi rare earths and mineral sands project in southwestern NSW, having previously issued a letter of support for WA rare earth explorer Victory Metals (ASX:VTM).

More recently and along the same lines, EXIM has provided VHM (ASX:VHM) with a letter of interest to provide up to US$200m of financing support for the Goschen rare earths and minerals sands project in northwest Victoria.

It was a point driven home yesterday as Lynas (ASX:LYC) announced a partnership with Noveon Magnetics to create a supply line for rare earths magnet manufacturing in the States. Lynas is currently the only producer of both separated light and heavy rare earths outside China.

Cashed-up partner

The embrace between Aussie rare earths miners and US capital is welcome news for Astron Corporation (ASX:ATR) given that it holds the advanced Donald rare earths and mineral sands project in Victoria.

Donald is the subject of a definitive feasibility study outlining robust financials and has already secured work plan approval from the Victorian Government, which marks the final major regulatory approval required to allow the construction and operation of its Phase 1 operation.

One key advantage possessed by the company is its joint venture with US critical minerals heavyweight Energy Fuels, which also secures offtake for Donald’s rare earth concentrate products to feed the processing facility at the White Mesa Mill in Utah.

In September 2024, the two companies executed the JV agreement with ATR issuing US$3.5m worth of shares to Energy Fuels while Energy Fuels provided the company with a $8.6m interest-free loan to fund development costs from the date of execution to the date when the JV becomes effective.

The loan was then converted into ~3.2% equity in the JV company.

Energy Fuels can increase its stake in the JV to 49% by funding $183m towards the execution and construction of the first phase of the Donald project, which is expected to satisfy the majority of the equity required to complete the phase 1 investment.

Fast forward to October 2025 with Energy Fuels closing a US$700m convertible senior notes offering earlier this month that was upsized by US$100m due to strong demand.

While this would ordinarily provide confidence that Energy Fuels would have the funding required to meet its commitments, the US company takes it a step further with its chief executive officer Mark Chalmers saying outright that it enhances the company’s ability to accelerate its REE initiatives such as the Donald project.

This is a clear signal of the US company’s continued interest in bringing the project into production, particularly for its REE content.

Donald project

The Donald project sits within the Wimmera region of Victoria about 300km northwest of Melbourne and is close to all necessary infrastructure including power, water, established transport routes and port export facilities.

It consists of the granted mining licence MIN5532, which is the site of the first phase development, and retention licence RL2002 that will host the second phase of development.

Donald has a resource of 1.8Bt grading 4.6% heavy minerals, of which just 17% is earmarked for the phase 1 development, and an ore reserve of 309Mt at 4.4% HM.

This includes the world’s largest new source of zircon and a valuable assemblage of heavy rare earths such as dysprosium and terbium.

The project features shallow, free-flowing ore amendable to conventional truck and shovel mining.

Processing is achieved through a conventional and proven flowsheet with recoveries of >90% at each stage of the separation circuit.

The phase 1 development is expected to generate pre-tax net present value and internal rate of return of $837m and 22.1% respectively.

Capex is expected to be $439m with 94% of that based on tendered or market prices.

A final investment decision is expected in late 2025 with first production expected in Q4 2027.

Energy Fuels will offtake all of the expected 9000t of REE concentrate that will be produced under phase 1 and 13,000t of concentrate in phase 2.

The company also owns the Jackson rare earths and mineral sands project that adjoins Donald to the southwest and has a resource of 823Mt at 4.8% HM.

At Stockhead, we tell it like it is. While Astron Corporation and VHM are Stockhead advertisers, they did not sponsor this article.