Energy Fuels Set to Acquire Australian Strategic Materials
Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) and Australian Strategic Materials (ASX:ASM,OTC Pink:ASMMF,OTCPL:ASMMF) have penned a scheme implementation deed, with Energy Fuels proposing to acquire 100 percent of Australian Strategic Materials.
The acquisition is intended to enable Energy Fuels to create a new “mine to metal and alloy rare earths champion” and includes Australian Strategic Materials’ Dubbo rare earths project and its flagship Korean metals plant.
Dubbo has already secured all necessary permits and is currently waiting on a final investment decision and commencement of construction.
Its reserves support an initial mine life of 20 years.
Meanwhile, the Korean Metals Plant (KMP) has been operational since 2022 and is now in Phase 1 commissioning with an installed capacity of 1,300 tonnes per annum of neodymium iron boron alloy.
Energy Fuels stated on its website that the transaction will combine ASM’s KMP and its planned American Metals Plant (AMP) with Energy Fuels’ existing REE oxide capability at its White Mesa Mill in Utah for greater vertical integration throughout the supply chain.
“(It) will (also) enable a wider product range—including REE oxides, metals, and alloys—serving customers across the U.S., Asia, and Europe.”
According to the announcement, shareholders of ASM will receive an implied value of AU$1.60 per share, a 121 percent premium to ASM’s last closing price.
Currently listed in Canada and the US, Energy Fuels has agreed to list on the ASX so shareholders can still trade shares via CHESS depositary interests.
“Following the transaction, ASM will have access to enhanced funding capacity and reduced execution risk through participation in a larger, better capitalised group,” the announcement read.
A meeting to vote on the scheme is expected to be held in the second quarter of calendar 2026, but ASM said that its board of directors unanimously recommends that ASM shareholders vote in favor of the scheme.
Subject to ASM shareholders and court approvals, implementation of the scheme is expected before June 30 of this year.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
