(Alliance News) - Base Resources Ltd on Monday said it has agreed to its acquisition by US firm Energy Fuels Inc, saying the combination will "establish a global leader" in the critical minerals sector.
The Africa-focused mineral sands producer and developer said Energy Fuels will acquire 100% of its shares through a scheme of arrangement. Energy Fuels is a uranium and critical minerals company headquartered in Lakewood, Colorado.
Base Resources said its shareholders will receive 0.026 of an Energy Fuels share for each of its own shares, plus a special dividend of 6.5 Australian cents per share, giving it a total equity value of AUD375 million or around GBP195.5 million.
It said total consideration amounts to 30.2 cents per share, almost triple its closing price of 10.5 cents in Sydney on Friday.
Base Resources shares surged up 90% to 10.28 pence on Monday morning in London. In Sydney, they more than doubled to 24 cents.
Base Resources said the takeover "will establish a global leader in the critical minerals sector with a focus on rare earth elements, uranium and heavy mineral sands production and a clear strategic development pathway".
Additionally, the firm said the deal will create a platform for the funding and development of its Toliara Project in Madagascar, with Energy Fuels processing future monazite production at its White Mesa mill.
"This transaction...reflects the exceptional quality of the Toliara Project and the efforts of the Base Resources team over the past several years to advance the project towards construction readiness," commented Managing Director Tim Carstens. "The combined group will have the financial and technical capability to not only build Toliara into one of the best critical mineral projects in the world, but also to develop an integrated value chain for the rare earth elements that are essential to the global energy transition."
Base Resources shareholders will hold approximately 16.4% of the combined company, which will have a pro forma market capitalisation of around USD1.14 billion.
Carstens said they "will receive both a compelling and immediate premium, and the opportunity to further participate in the market recognition and development of a company with a unique diversified position in the critical minerals landscape."
By Emma Curzon, Alliance News reporter
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