Mentioned:
The Pentagon is preparing to pour hundreds of millions of dollars into Energy Fuels. But, why?
What’s happening:
- Energy Fuels (NYSE: UUUU) has received a conditional funding commitment from The Pentagon’s Office of Strategic Capital for up to $725M USD in long term debt to accelerate the build out of their rare earth processing operations
By the numbers:
- The $725M USD conditional funding commitment from The Pentagon’s Office of Strategic Capital would be structured as senior-secured debt and would be paid back over 20 years
Why it matters:
- This is the largest funding commitment Energy Fuels has ever received from the United States government
Going deeper:
- Energy Fuels has publicly stated that the new funding from The Pentagon’s Office of Strategic Capital would be used to expand their rare earth processing operations at their flagship White Mesa Mill located in Utah as well to finance a new facility for rare earth metals and alloys
- Energy Fuels has been aggressively scaling up their domestic rare earth processing business lately, including notably producing their first kilogram of terbium oxide at their White Mesa Mill
The intrigue:
- The Pentagon’s Office of Strategic Capital also just recently awarded Phoenix Tailings with a conditional funding commitment of $500M USD to build out their Freedom Facility for rare earth processing
