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Astron Limited’s September quarter has been headlined by conditional approval for up to $180 million in senior debt funding for its Donald rare earths and mineral sands project in Victoria, bringing it closer to a final investment decision (FID).
The commitments from Export Finance Australia (EFA) and the National Reconstruction Fund Corporation (NRFC) were announced on October 27, with proposed financing forming part of a targeted $200 million senior debt facility to fund construction of Phase 1.
Discussions with commercial lenders for the balance of the facility and a separate bank guarantee facility are continuing.
Astron said it expects to make the FID in the December quarter of 2026, subject to approval by the joint venture partners and completion of commercial financing arrangements.
The project is a joint venture between Astron and U.S. critical minerals company Energy Fuels, which has the right to earn a 49 per cent interest by funding the majority of Phase 1 equity. Astron will retain a 51 per cent interest and manage the joint venture.
The Commonwealth Government has also approved exports of rare earth element concentrate (REEC) from Donald to Energy Fuels’ processing facilities in Utah, United States of America.
Astron said engineering, procurement and other workstreams were progressing in readiness for FID, including process plant design, procurement of long-lead items, selection of a module fabrication yard and continued earthworks and power supply design.
Four hundred spirals, described as fundamental processing units for the wet concentrator plant, have been fabricated and are being stored in Australia ahead of installation into production modules.
The preferred configuration for the project’s hybrid microgrid power supply has also been selected, with increased renewable energy penetration expected to reduce operating costs and carbon emissions.
Pre-construction cultural heritage activities have been completed following work with the Barengi Gadjin Land Council, representing the Wotjobaluk, Jaadwa, Jadawadjali, Wergaia and Jupagulk Peoples.
The project has an estimated Phase 1 mine life of about 40 years, with first production planned for 2028. At an expected average throughput of 7.5 million tonnes of ore a year, Phase 1 is forecast to produce 7100 tonnes of REEC and 192,000 tonnes of heavy mineral concentrate annually.
The concentrate will contain rare earth elements including neodymium, praseodymium, dysprosium and terbium, alongside zircon and titanium minerals.
Astron reported a total recordable injury frequency rate of zero for the year to date and held $13.8 million in cash at the end of September.
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