Mandrake Secures 2.5–4% Royalty Deal to Recover Uranium Using DISA’s Tech

A Strategic Partnership in Uranium Recovery

Mandrake Resources Limited (ASX, MAN) has taken a significant step towards monetizing legacy uranium mine waste within its expansive Utah Project by signing a non-binding term sheet with DISA Technologies Inc. The agreement aims to assess the feasibility of deploying DISA’s patented High Pressure Slurry Ablation (HPSA) technology to extract saleable uranium and other critical minerals from abandoned mine waste dumps across nearly 94,000 acres in Utah.

DISA’s technology, which is non-chemical and modular, promises not only to recover valuable minerals but also to remediate environmental hazards by removing up to 90% of uranium and radium-226 from waste, a claim supported by studies conducted with the US Environmental Protection Agency. This dual benefit aligns well with increasing US governmental focus on both resource security and environmental restoration.

Regulatory Milestones and Government Support

Crucially, DISA holds a pioneering Service Provider License granted by the US Nuclear Regulatory Commission in September 2025, authorizing it to remediate uranium mine waste sites across the western United States. This license is the first of its kind and represents a regulatory breakthrough that could accelerate the cleanup and resource recovery of legacy uranium sites.

Adding momentum, the US Department of Interior recently added uranium to its Critical Minerals List, signaling strong federal support for domestic uranium production and critical mineral recovery. This move is part of a broader strategy to reduce reliance on foreign supply chains and bolster national energy security, as outlined in Secretarial Order No. 3436, which encourages private sector involvement in mine waste recovery.

Commercial Terms and Future Prospects

Under the terms of the agreement, Mandrake will receive a sliding scale gross revenue royalty between 2.5% and 4% on any saleable uranium and critical minerals recovered, with DISA funding all operational costs and acting as the project operator. Additionally, Mandrake holds an option to convert this royalty into a 25% participating interest in the operations, providing potential upside if commercial production proceeds.

The Utah Project area, particularly the Lisbon Valley district, is historically significant, having produced a substantial portion of the US’s uranium output. Mandrake’s tenure includes over 40 historical uranium mines, positioning the company well to capitalize on this legacy resource base.

Looking Ahead

Next steps involve finalizing a binding agreement, conducting detailed sampling and gamma probe surveys to quantify recoverable minerals, completing commercial modelling, and securing necessary permits. The partnership with DISA offers Mandrake a novel pathway to diversify revenue streams beyond lithium, tapping into the growing US market for critical minerals and environmental remediation.

Mandrake’s Managing Director James Allchurch highlighted the strategic fit of this initiative within the US government’s push for domestic critical mineral production and the innovative nature of DISA’s technology. As the company advances, investors will be watching closely to see how this collaboration unfolds and whether it can deliver tangible financial and environmental returns.