U.S.-based uranium mining company Energy Fuels Inc. (NYSE:UUUU) (TSX:EFR) has entered into binding agreements to acquire seventeen (17) mineral 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 prior drilling, it is expected that the Bahia Project has considerable quantities of heavy minerals, particularly monazite, that will feed Energy Fuels' U.S.-based rare earth element (REE) supply chain.
Energy Fuels' primary interest is in the monazite, which contains both rare earth elements and uranium.
Energy Fuels plans to perform extensive exploration work over the next six months to further define and quantify the heavy mineral sand (HMS) resource at the Bahia Project.
Why It's Important: Energy Fuels expects ~58.3 square mile (~37,300 acre) heavy mineral sand position has the potential to feed its White Mesa Mill with rare earth element and uranium bearing natural monazite sand for decades.
Energy Fuels believes there is a clear path to moving the Bahia Project to production, as several of the concessions have valid exploration and mining permits with the Government of Brazil.
Price Action: EFR shares are trading higher by 2.52% at C$7.73 on TSX and UUUU higher by 2.64% at $6.04 on the last check Thursday.
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