MAN signs binding agreement for processing of uranium and other critical minerals
Our US lithium Investment Mandrake Resources (ASX: MAN) just signed a binding agreement to recover uranium and other critical minerals from its project in Utah.
This is the conversion of the prior non-binding MOU with DISA Technologies (DISA) to evaluate and treat mine waste dumps that sit on MAN’s ground…
We covered the initial MOU here.
As part of the deal, MAN will receive a gross revenue of between 2.5-4% (dependent on the metals price) from the uranium and critical minerals recovered, less typical treatment costs.
In addition to this part, MAN also has the option to purchase a 25% interest in DISA’s Utah project operations.
DISA will be in charge of the operation and funding 100% of the work.
MAN’s project actually sits next to US uranium producer Energy Fuels - which is capped at US$5.6BN.
Energy Fuels owns the White Mesa Mill which is the only fully licensed, operational conventional uranium-vanadium mill in the US and the La Sal uranium mine, which is ~5km away from MAN’s project area.
Energy Fuels is also the company that recently started producing heavy rare earths from its White Mesa Mill. (source).
(Source)
MAN has also previously sampled its project for uranium and received results of up to 0.55% uranium.
We covered those uranium samples here: MAN uranium samples rejected by assay laboratory for being “too radioactive”
Those results were never followed up - so it will be interesting to see what comes from the work being done with DISA.
What’s next for MAN?
New project acquisitions
MAN said in its recent quarterly that it was reviewing new project opportunities as well as pursuing “organic project generation initiatives”.
With lithium currently unloved, it will be interesting to see what comes from this.
(Source)
