US-based uranium mining company Energy Fuels has signed agreements with private mineral rights holders to acquire 17 mineral concessions (Bahia Project) in Bahia, Brazil.
Located between Prado and Caravelas, the concessions cover an area of around 37,300 acres and are estimated to hold significant quantities of heavy minerals, including monazite.
Under the deal, Energy Fuels will provide $27.5m in cash, which includes non-refundable cash deposits of $2.75m to be made upon signing.
The firm will make additional non-refundable cash deposits of $2.85m at various benchmarks during the due diligence period. The remaining $21.9m will be paid at the closing of the transaction.
The Bahia Project holds several concessions that are claimed to have valid exploration and mining permits with the Brazilian Government.
Energy Fuels said in a statement: “The company believes there is a clear path to moving the Bahia Project to production.”
The company expects the mineral concessions to feed rare earth elements and uranium-bearing natural monazite sand to its White Mesa Mill in the US for decades.
Energy Fuels president and CEO Mark Chalmers said that the firm is aggressively seeking to expand its monazite sand feeds.
Chalmers added: “The Bahia deposit is well-known throughout the HMS industry as having excellent potential to produce high-quality ilmenite, rutile, and zircon products, in addition to monazite.
“The company expects to supplement its monazite supply in the future with open market purchases, arrangements with existing monazite producers, and/or additional acquisitions. Energy Fuels is in advanced discussions with other current and future monazite producers around the world to provide creative options on how to best build upon our momentum and add further scale.”