Mandrake’s New Uranium Deal Hinges on Permits and Market Prices Amid US Policy Push

Mandrake and DISA Join Forces to Tap Legacy Uranium

Mandrake Resources Limited (ASX – MAN) has taken a significant step forward in its US uranium and critical minerals strategy by signing a formal binding agreement with DISA Technologies Inc. The deal centers on evaluating and treating abandoned mine waste dumps within Mandrake’s 93,755-acre Utah Project using DISA’s patented High Pressure Slurry Ablation (HPSA) technology. This innovative process promises not only to recover valuable uranium and other critical minerals but also to remediate environmental contaminants from legacy mining operations.

Under the agreement, DISA will operate and fund all costs associated with the commercial evaluation, permitting, and treatment activities. Mandrake will earn a sliding scale gross revenue royalty ranging from 2.5% to 4%, dependent on uranium prices, with the option to convert this royalty into a 25% participating interest in the project’s operations. This structure offers Mandrake both immediate revenue potential and longer-term upside through equity participation.

Strategic Alignment with US Government Priorities

The timing of this agreement aligns closely with the US government’s intensified focus on securing domestic supplies of uranium and critical minerals. DISA’s recent receipt of a first-of-its-kind Service Provider License from the US Nuclear Regulatory Commission authorizes it to remediate uranium mine waste sites nationwide, a milestone that underscores the regulatory support for such initiatives. Additionally, uranium’s inclusion on the Department of the Interior’s Critical Minerals List and the issuance of Secretarial Order No. 3436 highlight the federal commitment to unlocking strategic minerals from mine waste and streamlining permitting processes.

These policy developments create a favorable backdrop for Mandrake’s Utah Project, situated in the Lisbon Valley district, a historically prolific uranium-producing region accounting for a significant share of US uranium output. The project’s location within a pro-mining jurisdiction with access to Tier 1 infrastructure further enhances its commercial prospects.

Environmental and Commercial Implications

Beyond the economic upside, the HPSA technology offers substantial environmental benefits by removing approximately 90% of uranium and radium-226 from mine waste, as demonstrated in treatability studies with the US Environmental Protection Agency. This dual value proposition, recovering critical minerals while improving local ecosystems, positions the project at the intersection of resource development and environmental remediation.

Mandrake’s Managing Director, James Allchurch, emphasized the strategic opportunity this partnership presents, noting DISA’s leadership in non-chemical mineral upgrading and the growing US market for domestically sourced uranium and critical minerals. The option to acquire a stake in the operations provides Mandrake with additional leverage to benefit from future growth.

Next Steps and Market Watch

The immediate focus will be on continued characterization of the waste dumps, including gamma probe surveys to estimate recoverable mineral volumes, alongside commercial modelling and permitting efforts. The success of these steps will be critical in translating the agreement’s potential into tangible production and revenue streams.

For investors and observers, this deal marks a noteworthy pivot for Mandrake, expanding its footprint beyond lithium exploration into uranium and critical mineral recovery, supported by cutting-edge technology and strong regulatory tailwinds.