Under the five year offtake agreement, TRER will supply up to 300,000 pounds of natural uranium concentrates (U308) a year and natural uranium concentrates (U308) will be supplied based on upon a pricing formula indexed to U308 spot prices at the times of delivery.
Scheduled to commence in 2018, the agreement is subject to development and production at TRER’s Round Top project.
TRER president and CEO Dan Gorski said: This offtake agreement with AREVA demonstrates industry confidence in the potential commercial viability of the development of our Round Top heavy rare earth project and the marketability of our byproducts.
"We intend to continue to monetize our remaining byproducts such as lithium, potassium and beryllium as we move forward in commercializing our entire resource base."
According to 2013 preliminary economic assessment report, TRER has around 96.4 million pounds in total of measured, indicated and inferred U308 oxide resources.
TRER board member and rare earth industry consultant Jack Lifton said: "We were able to attract a uranium industry market leader like AREVA because of the progress on our Round Top project metallurgy due to our application of the K-Tech continuous ion exchange/continuous ion chromatography (CIX/CIC) technology.
"This separation technology has been applied to the recovery of uranium from similar process leach solutions and is commonly used in the uranium extraction industry."
