MAN signs deal to recover uranium from its project in Utah, USA
Our US lithium Investment Mandrake Resources (ASX: MAN) just signed a non-binding term sheet to recover uranium and other critical minerals from its project in Utah.
MAN’s deal with US based DISA Technologies (DISA) is to evaluate and treat mine waste dumps that sit on MAN’s ground…
…“To recover saleable uranium and other critical minerals”.
DISA was recently issued a Service Providers License by the U.S. Nuclear Regulatory Commission (NRC) which allows DISA to remediate uranium mine waste sites across the US.
MAN confirmed in today’s announcement that DISA had already completed sampling across MAN’s project and identified 19 individual sites requiring comprehensive characterisation.
The deal (if it eventuates) would see DISA take waste dumps from MAN’s project, convert them into saleable uranium (or other critical minerals), and MAN would receive 2.5% to 4% of gross revenue from the products recovered.
(MAN also has an option to convert the revenue share agreement into a 25% profit sharing interest in the entire operation).
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MAN’s project actually sits next to US uranium producer Energy Fuels - which is capped at US$5.7BN.
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)
