Energy Fuels Enters Memorandum of Understanding with the Government of Madagascar for Toliara Project

Energy Fuels Inc. (NYSE:UUUU) recently disclosed in a Form 8-K filing to the Securities and Exchange Commission that on December 5, 2024, they entered into a significant Memorandum of Understanding (MOU) with the Republic of Madagascar concerning their Toliara titanium, zirconium, and rare earth elements project located in southwestern Madagascar. The MOU outlines key terms pertinent to the project’s development timeline and activities.

Following the lifting of the suspension on the Toliara Project, initially imposed in November 2019, by the Madagascar Council of Ministers as Chaired by the President of Madagascar, Energy Fuels is now able to proceed with the project’s development. The company is currently aiming at achieving a positive final investment decision (FID) within the next approximately 14 months. As this progress continues, Energy Fuels will collaborate with the Government of Madagascar to formalize the terms and conditions stated in the MOU using a “Stability Mechanism.”

This Stability Mechanism may involve several approaches, including submitting an Investment Agreement to the Madagascar Parliament for approval as law, alterations to the existing framework related to large-scale investments in the Malagasy mining sector, or other agreed-upon mechanisms to ensure financial and legal certainty for large-scale projects.

Under the terms of the MOU, Energy Fuels has committed to a five percent (5%) royalty on mining products and an $80 million funding allocation for the project, to be disbursed in various stages including pre and post-FID milestones. Additionally, the company has pledged investments in community and social initiatives as well as ensuring environmental, social, and fiscal responsibility throughout the project’s development.

The successful execution of the MOU is contingent upon certain conditions, including the satisfactory adoption of the Stability Mechanism, Project Certification, and legal stability conditions in Madagascar. The Government of Madagascar has also pledged support for the timely processing of permits and approvals necessary for the Toliara Project’s progress.

The Company stresses that the terms outlined in the MOU are subject to the specified conditions, and any potential failure to meet these conditions might impact the project’s timeline and development prospects significantly.

Energy Fuels highlighted the forward-looking nature of the information contained in the filing, stating that certain risks and uncertainties accompany the project’s progress, including regulatory changes, pricing fluctuations, and funding challenges.

Investors and stakeholders are advised to exercise caution and vigilance concerning this announcement and to refer to the official filings for comprehensive details on this highly impactful memorandum.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Energy Fuels’s 8K filing here.

About Energy Fuels

Energy Fuels Inc, together with its subsidiaries, engages in the extraction, recovery, recycling, exploration, permitting, evaluation, and sale of uranium mineral properties in the United States. The company produces and sells vanadium pentoxide, rare earth elements, and heavy mineral sands, such as ilmenite, rutile, zircon, and monazite.