Regulatory and Funding Milestones Bring Astron’s Donald Project Closer to Construction

Funding and Joint Venture Progress

Astron Corporation Limited (ASX: ATR) has reported robust progress in its December 2024 quarterly activities report, highlighting critical developments in its flagship Donald Rare Earths and Mineral Sands Project in Victoria, Australia. The company successfully raised $14.5 million through a combination of a placement and a retail entitlement offer, bolstering its financial position as it advances towards a Final Investment Decision (FID) targeted for 2025.

Under the joint venture (JV) agreement with Energy Fuels Inc., Energy Fuels is now funding the bulk of Phase 1 project development costs, reflecting a strategic partnership where Astron retains a 51% interest and JV manager role, while Energy Fuels can earn up to 49% equity. This arrangement has allowed Astron to focus on project execution and regulatory approvals with the support of its JV partner.

Regulatory Milestones and Project Design

Regulatory progress remains on track, with the Victorian Earth Resources Regulator expected to grant the crucial Work Plan approval in the first quarter of 2025. This approval is the last major regulatory hurdle before the FID can be taken. Other state and federal approvals have been secured or are advancing, underpinning the project’s readiness for construction.

Engineering efforts continue apace, with Sedgman Pty Ltd overseeing final process design and layout, while Mineral Technologies Pty Ltd is collaborating on modular construction approaches to optimise site build efficiency. Mechanical equipment testing has been completed, and tenders for mining contractors and logistics providers are underway, positioning the project for a smooth transition into execution.

Operational and Community Engagement

Operational readiness has been strengthened with key appointments, including Grant Huggins as General Manager of Operations, bringing extensive mineral sands experience. Community engagement remains a priority, with ongoing consultations across the local region to foster strong relationships with stakeholders and landholders ahead of construction.

Astron’s Yingkou mineral separation plant in China continues to ramp up production, with efforts to secure additional feedstock and commercial off-take arrangements progressing. Meanwhile, the company has reached an in-principle agreement with the Harmony Group for a management buy-out of its interest in the Niafarang Mineral Sands Project in Senegal, allowing Astron to concentrate resources on the Donald Project.

Corporate and Strategic Moves

In a strategic corporate move, Astron is pursuing a redomicile from Hong Kong to Australia, aligning its corporate domicile with its primary asset base and investor base. This transition is expected to enhance governance, reduce regulatory complexity, and improve market perception. The redomicile process is planned to be executed via a scheme of arrangement, subject to shareholder and court approvals in early 2025.

Financially, the company’s expenditure during the quarter focused on regulatory approvals, engineering design, tendering, land access, and debt financing preparations. An Independent Technical Expert report has been finalised to support debt funding discussions, a critical step towards securing the project’s financing package.