A Further Step in the Development of a Fully
Integrated U.S. Rare Earth Element Supply Chain
- Energy Fuels and Hyperion have signed a memorandum of
understanding to evaluate the potential supply of monazite sands
from the Titan Project in Tennessee to Energy Fuels’ White Mesa
Mill in Utah for the production of rare earth products.
- Monazite is a very valuable rare earth-bearing mineral, planned
to be produced at the Titan Project as a component of its heavy
mineral sand concentrate product.
- The MOU highlights the potential importance of Hyperion’s Titan
Project, as Energy Fuels advances its initiatives to establish a
fully integrated, low-cost U.S rare earth element supply
chain.
- Energy Fuels and Hyperion will also evaluate a potential
arrangement to collaborate in the development of an integrated U.S.
rare earth supply chain.
Energy Fuels Inc. ("Energy Fuels") (NYSE: UUUU) (TSX:
EFR) and Hyperion Metals Limited (“Hyperion”) (ASX: HYM)
are pleased to announce the execution of a non-binding memorandum
of understanding ("MOU") for the supply of natural monazite
sands (“Monazite”) from Hyperion’s Titan Project in
Tennessee (the “Titan Project”). Energy Fuels plans to
produce mixed rare earth element (“REE”) products from
processing the Monazite at its White Mesa Mill in Utah.
The parties have also agreed to evaluate a potential teaming,
joint venture, equity investment or other arrangement under which
Hyperion would collaborate with Energy Fuels, and potentially other
parties, in advancing Energy Fuels’ current initiative to establish
a fully integrated, “mine to market” U.S. rare earth supply chain
for the electric vehicle and renewable energy sectors, as well as
other specialty uses.
The collaboration between Energy Fuels and Hyperion will
initially focus on the potential commercial supply of Monazite from
Hyperion’s Titan Project to Energy Fuels’ White Mesa Mill. Under
the MOU, the parties have agreed to negotiate a definitive sales
agreement for this supply of Monazite. In addition, subject to
Hyperion supplying Energy Fuels with a sufficient quantity of
Monazite from the Titan Project within a reasonable period of time,
Hyperion and Energy Fuels will evaluate entering into a joint
venture or other similar arrangement whereby Hyperion would
participate with Energy Fuels, and potentially other parties, in
the continuing development and operation of an integrated, low-cost
and sustainable independent U.S. rare earth supply chain, under
which Monazite would be supplied from The Chemours Company (NYSE:
CC) (“Chemours”) U.S. projects, the Titan Project, and
potentially other U.S. and international mines, with the Monazite
to be processed and separated into value-added rare earth products
at Energy Fuels’ White Mesa Mill. This could potentially also
result in the development of rare earth metal production
capabilities.
Hyperion’s Titan Project covers a large area of heavy mineral
sands properties in Tennessee prospective for titanium, zircon,
Monazite and other valuable minerals such as high-grade silica sand
and other refractory minerals. The Titan Project is in an area
which saw significant historic exploration from 1960 – 1990 by
DuPont, BHP and others, strategically located in the southeast of
the U.S., close to significant manufacturing capacity, providing
what Hyperion believes to be a significant logistical advantage
over current U.S. supplies of imported titanium feedstock.
Hyperion is nearing completion of a three-phase drilling and
bulk sampling test work program at the Titan Project. Results to
date have successfully confirmed the high grade and significant
thickness of mineralization over approximately a 3.6 km strike
length. Assays from the drill programs to date have returned thick
zones of high-grade Total Heavy Mineral (“THM”) near
surface, with highlights including:
- 47.2m @ 3.69% THM including 10.7m @ 8.09% THM and 10.7m @ 5.47%
THM
- 36.6m @ 3.37% THM including 12.2m @ 7.65% THM
- 35.1m @ 3.04% THM including 10.7m @ 8.16% THM
- 41.1m @ 2.14% THM including 9.1m @ 5.55 THM
- 33.5m @ 2.21% THM including 12.2m @ 5.64% THM
Hyperion’s bulk sampling test work for flow-sheet development is
nearing completion, and is evaluating the production of a number of
mineral products, including:
- Titanium minerals – used to produce titanium metal and for the
production of paint and pigments;
- Monazite – used for the production of rare earth products;
- Zircon – used for the ceramic and foundry markets; and
- High quality silica – used in float glass, solar panel glass
and pharmaceutical grade glass.
A 70-hole Phase 3 drill program is nearing completion, and
together with the bulk sample program will form the basis for
Hyperion’s initial mineral resource estimate expected to be
delivered in Q2 2021. For more information about the Titan Project
go to: www.hyperionmetals.us
Energy Fuels and Neo Performance Materials Inc. (TSX: NEO)
(“Neo”) recently announced the joint launch of a
U.S.-European REE supply chain involving Energy Fuels, Neo and
Chemours. Under this emerging initiative, Energy Fuels is currently
purchasing 2,500 tons of Monazite per year from the Chemours
Company’s Georgia (USA) heavy mineral sand operations. Energy Fuels
is currently processing this Monazite at its White Mesa Mill in
Utah into a clean, mixed REE carbonate, as well as recovering the
contained uranium. Energy Fuels is selling this intermediate REE
product to Neo’s REE separations facility in Sillamae, Estonia for
the production of commercial value-added REE products, supplying
U.S. and European markets.
In addition to producing mixed REE carbonate, Energy Fuels is
also evaluating the potential to develop U.S. separation, metals,
alloys, and other downstream REE capabilities at the White Mesa
Mill, or nearby, thereby fully integrating a U.S. rare earth supply
chain in the coming years. Energy Fuels is seeking to increase its
supply of Monazite feed to approximately 15,000 tons per year (or
greater) for this initiative. Subject to completion of permitting,
development and commencement of operations, the Titan Project is
expected to be a potential future source of Monazite to supplement
Chemours’ supply of Monazite to Energy Fuels.
The MOU highlights the importance of Hyperion’s Titan Project as
a potentially important source of high value American rare earth
minerals, expected to play an integral role in rebuilding
sustainable, robust and resilient transportation, energy and
defense sectors, and the desire of Energy Fuels to build
diversified and significant Monazite feedstocks from various
sources.
Energy Fuels’ President and Chief Executive Officer, Mr. Mark
Chalmers, said: “Energy Fuels, along with Chemours and Neo, are
creating a new U.S.-Europe rare earth supply chain. For this
initiative to achieve its full potential, we are actively seeking
new, ethically-produced sources of Monazite, with sources from the
U.S. being our first priority. Therefore, we are excited to work
with Hyperion to secure additional sources of Monazite for
processing at the White Mesa Mill. Through their association with
Piedmont Lithium’s project in South Carolina, members of the
Hyperion team have demonstrated to us that they have the know-how
and resources to bring U.S. critical mineral projects into
production. We look forward to working with the Hyperion team and
potentially seeing our relationship grow through their
participation in a fully-integrated, low cost U.S. rare earth
supply chain in the future. We are particularly excited about the
prospect of sourcing U.S. mined Monazite, which together with our
current supplies from Chemours’ Georgia operations and the unique
capabilities of the White Mesa Mill, demonstrates to us that a
world-competitive and world-scale, fully integrated U.S. rare earth
supply chain is becoming a reality.”
Hyperion’s Managing Director, Mr. Anastasios Arima, said:
“We are excited to progress the potential supply to Energy Fuels of
American Monazite for its rare earths supply chain right here in
the USA, bringing back sustainable American industry and skilled
jobs for generations. The import dependence of the U.S. for key
critical minerals, including rare earths and titanium, presents a
huge threat to the security of key domestic industries, including
defense, space, aerospace, renewables and electric vehicles. Our
collaboration with Energy Fuels highlights the importance of
Hyperion’s Titan Project in the U.S. as a leader in American
sourced critical minerals through its plans to produce zero carbon
titanium metals, delivering a clean energy future through the
supply of rare earth elements for electric vehicles and the
renewable power sectors.”
This announcement has been authorized for release by Hyperion’s
Managing Director.
About Energy Fuels: Energy Fuels is a leading U.S.-based
uranium mining company, supplying U3O8 to major nuclear utilities.
The Company also produces vanadium from certain of its projects, as
market conditions warrant, and is in the process of ramping-up to
commercial production of REE carbonate in 2021. Its corporate
offices are in Lakewood, Colorado near Denver, and all of its
assets and employees are in the United States. Energy Fuels holds
three of America's key uranium production centers: the White Mesa
Mill in Utah, the Nichols Ranch in-situ recovery ("ISR")
Project in Wyoming, and the Alta Mesa ISR Project in Texas. The
White Mesa Mill is the only conventional uranium mill operating in
the U.S. today, has a licensed capacity of over 8 million pounds of
U3O8 per year, and has the ability to produce vanadium when market
conditions warrant, as well as REE carbonate and uranium from
Monazite. The Nichols Ranch ISR Project is currently on standby and
has a licensed capacity of 2 million pounds of U3O8 per year. The
Alta Mesa ISR Project is also currently on standby. In addition to
the above production facilities, Energy Fuels also has one of the
largest NI 43-101 compliant uranium resource portfolios in the U.S.
and several uranium and uranium/vanadium mining projects on standby
and in various stages of permitting and development. The primary
trading market for Energy Fuels' common shares is the NYSE American
under the trading symbol "UUUU," and the Company's common shares
are also listed on the Toronto Stock Exchange under the trading
symbol "EFR." Energy Fuels' website is www.energyfuels.com.
About Hyperion: Hyperion Metals’ mission is to be the
leading developer of zero carbon, sustainable, critical material
supply chains for advanced American industries including space,
aerospace, electric vehicles and 3D printing. The Company holds a
100% interest in the Titan Project, covering nearly 4,000 acres of
prospective titanium, rare earth minerals, high grade silica sand
and zircon mineral sands properties in Tennessee, USA, as well as
an option to secure the exclusive license to produce low carbon
titanium metal using the breakthrough HAMR technology, invented by
Dr. Z. Zak Fang and his team at the University of Utah with
government funding from ARPA-E. The primary trading market for
Hyperion’s common shares is the Australian Stock Exchange under the
trading symbol "HYM." Hyperion’s website is
www.hyperionmetals.us.
Cautionary Statements Regarding Forward Looking
Statements
This news release contains "forward-looking information" within
the meaning of applicable securities laws in the United States,
Canada, and Australia. Forward-looking information may relate to
future events or future performance of Energy Fuels or Hyperion.
All statements in this release, other than statements of historical
facts, with respect to Energy Fuels' or Hyperion’s objectives and
goals, as well as statements with respect to their beliefs, plans,
objectives, expectations, anticipations, estimates, and intentions,
are forward-looking information. Specific forward-looking
statements in this discussion include, but are not limited to, the
following: any expectation that the Titan Project will be permitted
and developed into a commercial producing mine; any expectation
that the Titan Project will provide a significant logistical
advantage over current U.S. supplies of imported titanium
feedstock; any expectation that future exploration or bulk sample
results at the Titan Project will meet expectations; any
expectation that a JORC Code report will be prepared for the Titan
Project and that it will confirm current exploration or bulk
sampling results or otherwise meet expectations; any expectation
that the Titan Project will contain Monazite in a commercial form
or that the Titan Project will be capable of producing satisfactory
amounts of Monazite per year; any estimation of the mine life of
the Titan Project or when it may commence production of Monazite,
if at all; any expectation that the White Mesa Mill will be
successful in producing REE carbonate on a commercial basis; any
expectation that Neo will be successful in separating the White
Mesa Mill's REE carbonate on a commercial basis; any expectation
that Energy Fuels will be successful in increasing its supplies of
Monazite, developing U.S. separation, metals or metal/alloy
capabilities at the White Mesa Mill or nearby, or otherwise fully
integrating a low cost U.S REE supply chain in the future; any
expectation with respect to the quantities of Monazite to be
acquired by Energy Fuels; any expectation with regard to the cost
of producing and separating REE carbonate; and any expectation that
Energy Fuels and Hyperion will be successful in completing
definitive agreements and hence proceeding with their collaborative
efforts . Often, but not always, forward-looking information can be
identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "continues",
"forecasts", "projects", "predicts", "intends", "anticipates" or
"believes", or variations of, or the negatives of, such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "should", "might" or "will" be taken, occur or be
achieved. This information involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information. Factors that could cause actual
results to differ materially from those anticipated in these
forward-looking statements include risks associated with:
permitting and developing the Titan Project; exploration results
not meeting expectations on the Titan Project; commodity prices;
the Titan Project never going into production; legal challenges and
injunctions; processing difficulties and upsets; available supplies
of Monazite; the ability of the White Mesa Mill to produce REE
carbonate to meet commercial specifications on a commercial scale
at acceptable costs; the ability of Neo to separate REE carbonate
to meet commercial specifications on a commercial scale at
acceptable costs; market factors, including future demand for REEs;
and the ability of Energy Fuels and Hyperion to finalize definitive
agreements. Forward-looking statements contained herein are made as
of the date of this news release, and Energy Fuels and Hyperion
disclaim, other than as required by law, any obligation to update
any forward-looking statements whether as a result of new
information, results, future events, circumstances, or if
management's estimates or opinions should change, or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements. Energy Fuels and Hyperion assume no
obligation to update the information in this communication, except
as otherwise required by law.
Competent Persons Statement
The information in this announcement that relates to the Titan
Project Exploration Results is extracted from Hyperion’s ASX
Announcements dated 10 March 2021 and 7 January 2021 (“Original
ASX Announcements”) which are available to view at Hyperion’s
website at www.hyperionmetals.us.
Hyperion confirms that a) it is not aware of any new information or
data that materially affects the information included in the
Original ASX Announcements; b) all material assumptions included in
the Original ASX Announcements continue to apply and have not
materially changed; and c) the form and context in which the
relevant Competent Persons’ findings are presented in this report
have not been materially changed from the Original ASX
Announcements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210421006083/en/
Energy Fuels Inc. Curtis Moore – VP – Marketing &
Corporate Development (303) 974-2140 or Toll free: (888) 864-2125
investorinfo@energyfuels.com www.energyfuels.com
Hyperion Metals Limited Anastasios (Taso) Arima -
Managing Director +1 347 899 1522 info@hyperionmetals.us
www.hyperionmetals.us
Hyperion Metals Limited Dominic Allen - Corporate
Development +61 468 544 888 info@hyperionmetals.us
www.hyperionmetals.us
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