Energy Fuels Acquires RadTran LLC to Address Global Need for Medical Radioisotopes in Cancer Treatments

Energy Fuels Inc., a prominent player in uranium and rare earth elements (REE) production, has announced its acquisition of RadTran LLC, a private firm known for its expertise in separating critical radioisotopes. This strategic move is aimed at bolstering Energy Fuels' capabilities in producing medical isotopes utilized in cancer therapies.

The acquisition, finalized on August 16, 2024, aligns with Energy Fuels' plans for developing and producing medical isotopes crucial for emerging targeted alpha therapies (TAT) in cancer treatment. RadTran specializes in extracting radium-226 (Ra-226) and radium-228 (Ra-228) from uranium and thorium processing streams, which are key isotopes for TAT.

Mark Chalmers, President and CEO of Energy Fuels, expressed enthusiasm about combining the processing prowess of the White Mesa Mill, the only operating uranium mill in the U.S., with RadTran's specialized knowledge. Chalmers highlighted the potential for recovering valuable isotopes from existing process streams, thus recycling materials that would otherwise be wasted and repurposing them for life-saving treatments.

The collaboration between Energy Fuels and RadTran dates back to July 2021, under a Strategic Alliance Agreement to assess the feasibility of extracting Ra-226 and Ra-228 from uranium process streams at the White Mesa Mill in Utah. These isotopes, once recovered, are intended for the pharmaceutical industry to produce actinium-225 (Ac-225) and lead-212 (Pb-212), essential components in TAT. The global shortage of Ra-226 and Ra-228 is currently a significant obstacle in the advancement of these promising cancer treatments.

In 2023, Energy Fuels received regulatory approval to concentrate research and development (R&D) quantities of Ra-226 at the White Mesa Mill. The company is now completing engineering on its R&D pilot facility for Ra-226 production. By the end of 2024, Energy Fuels aims to produce R&D quantities of Ra-226 for testing. Successful R&D production is expected to pave the way for commercial-scale production of Ra-226 and potentially Ra-228 between 2026 and 2028, contingent on engineering design completion, securing offtake agreements, and regulatory approvals.

The acquisition deal includes an initial payment of $1.5 million in cash, $1.5 million in Energy Fuels common shares, and a 2% royalty on future revenues from radium sales. Additional payments up to $14 million in cash and shares are contingent on meeting performance milestones, such as achieving initial production and securing sufficient offtake agreements for commercial production.

Dr. Saleem Drera, President and CEO of RadTran, will join Energy Fuels as Vice President of Radioisotopes, Radiological Systems, and Intellectual Property. Dr. Drera will lead efforts to integrate RadTran's proprietary technology, which includes patents and trade secrets for efficient separation of Ra-226 and Ra-228 from process streams.

The demand for Ra-226 and Ra-228 is driven by over 30 clinical trials evaluating Ac-225, a derivative of Ra-226, for various cancers, including neuroendocrine tumors and leukemia. Several trials are in the final approval stages, underscoring the urgent need for a reliable supply of these isotopes. Energy Fuels aims to address this supply bottleneck and support the development of these critical cancer therapies.

Dr. Drera expressed pride in joining Energy Fuels, citing the company's extensive experience and the White Mesa Mill's state-of-the-art facilities as ideal for employing RadTran's technology. He also noted Energy Fuels' commitment to adhering to high standards for health, safety, and environmental protection.