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Energy Fuels, a Lakewood, Colorado-based uranium and critical minerals producer, agreed to acquire Australian junior miner Base Resources.

Energy Fuels Secures Critical Mineral Supply Chain Via $240M Base Resources Deal

Base Resources Ltd

Energy Fuels (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/UUUU#AMEX">UUUU</a>), a Lakewood, Colorado-based uranium and critical minerals producer, agreed to acquire Australian junior miner Base Resources (OTCPK: BSRUF).



The transaction, announced Sunday, April 21, is valued at $240 million. 



&#8220;The acquisition of Base Resources and the Toliara project represents a monumental leap forward for the company as we continue to execute on a truly revolutionary REE, uranium, and critical mineral combined strategy,&#8221; <a href="https://www.energyfuels.com/2024-04-21-Energy-Fuels-Announces-Agreement-for-Transformational-Acquisition-of-Base-Resources,-Creating-a-Global-Leader-in-Critical-Minerals-Production-with-a-Focus-on-Uranium,-Rare-Earth-Elements-and-Heavy-Mineral-Sands">said</a> Energy Fuels CEO Mark Chalmers, explaining that the company has been innovating new methods to produce critical minerals, leveraging its uranium processing expertise and infrastructure to develop a U.S.-centric rare earth oxide (REE) supply chain.



The key asset in this acquisition is the Toliara project in southwest Madagascar. 



This project is a large-scale mineral deposit. It&#8217;s rich in ilmenite, zircon and monazite, a key source of rare earth elements (REE). These elements are crucial components in electric vehicles, wind turbines, and other clean energy applications. It is also used in national defense sectors.



Once operational, the monazite from Toliara will serve as a significant source of feedstock for Energy Fuels&#8217; White Mesa mill in Utah. It will provide a projected average of 21,800 tons of rare earth-bearing monazite per year at a cost expected to be competitive with other global REE producers, including those in China.



See Also: <a href="https://www.benzinga.com/m-a/24/04/38380999/exclusive-why-this-uranium-bull-market-is-different-weve-really-got-to-start-developing-mines-says-m">EXCLUSIVE <a href="https://www.benzinga.com/m-a/24/04/38380999/exclusive-why-this-uranium-bull-market-is-different-weve-really-got-to-start-developing-mines-says-m">—</a> Why This Uranium Bull Market Is Different — &#8216;We&#8217;ve Really Got To Start Developing Mines,&#8217; Says Madison Metals CEO</a>



The Base Resources acquisition comes as uranium trades at multi-year highs, reaching $106 per pound in February. This trend has driven the <a href="https://www.benzinga.com/m-a/24/03/37459629/uranium-surge-revives-old-mines-sparks-mergers-across-sector">activation of dormant assets</a>. It allowed producers like Energy Fuels to capitalize on the resurging demand for nuclear power.



Base Resources shareholders will receive 0.0260 of an Energy Fuels common share plus a dividend of $0.042 for each share held, totaling roughly 20 cents per share. This premium represents a 188% increase from Base Resources&#8217; last closing price and a 173% premium to the 20-day volume-weighted average price (VWAP) of Base Resources shares.



The transaction is expected to close in the third quarter of 2024. Regulatory approval is pending.



Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get started!



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