Uranium mining company based in the United States Energy Fuels Inc. UUUU EFR entered into binding agreements to acquire seventeen (17) mining concessions between the towns of Prado and Caravelas in the state of Bahia, Brazil, totaling 15,089.71 hectares (~37,300 acres or 58.3 square miles) .
What happened: Energy Fuels has entered into purchase agreements with private mineral rights holders in Brazil to acquire the concessions comprising the Bahia project for $27.5 million in cash.
Based on previous drilling, the Bahia Project is expected to contain significant amounts of heavy minerals, particularly monazite, which will fuel Energy Fuels’ rare earth element (REE) supply chain based in the USA.
Energy Fuels’ main interest is monazite, which contains both rare earths and uranium.
Energy Fuels plans to carry out significant exploration work over the next six months to better define and quantify the heavy mineral sand (HMS) resources of the Bahia project.
Why it matters: Energy Fuels expects the approximately 58.3 square mile (~37,300 acre) heavy mineral sand position to have the potential to supply its White Mesa plant with rare earth elements and natural monazite sand containing uranium for decades.
Energy Fuels believes there is a clear path to move the Bahia project into production, as several of the concessions have valid exploration and mining permits with the government of Brazil.
Price Action: EFR shares are trading up 2.52% at C$7.73 on the TSX and UUUU up 2.64% at $6.04 when last checked on Thursday.
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