Energy Fuels' Bold Move: Acquisition of Base Resources Paves Way for Growth

Energy Fuels Secures Approval for Acquisition of Base Resources

Energy Fuels Inc. (NYSE American: UUUU, TSX: EFR) has announced an exciting development in the realm of critical minerals. The Federal Court of Australia has approved the acquisition of Base Resources Limited by Energy Fuels through a structured scheme of arrangement. This significant approval heralds a transformative period for Energy Fuels as it expands its portfolio in the critical minerals sector.

Details of the Acquisition Transaction

The scheme of arrangement outlines that Energy Fuels will acquire all of Base Resources' issued shares. In return, Base shareholders will receive 0.026 Energy Fuels Common Shares for each share they hold, along with a special dividend of AUD 0.065 per share. This is a strategic interim financial measure aimed at attracting shareholder support while aiming to bolster Energy Fuels' market presence through this acquisition.

Statements from Leadership

Mark S. Chalmers, the President and CEO of Energy Fuels, expressed his enthusiasm about the court's decision, stating, "I am pleased that the Court has approved Energy Fuels' combination with Base Resources. This approval is the final step prior to closing the deal. We anticipate this will significantly aid in developing the Toliara Project. Our aim is to raise Energy Fuels into a prominent critical minerals corporation." Chalmers highlighted the increasing importance of domestic supply chains, especially in today's geopolitical climate. He also noted a positive trend in rare earth element market prices, with the current price of NdPr estimated at approximately $59.60 per kilogram.

Next Steps After Court Approval

Following the court’s approval, Energy Fuels will proceed by submitting a copy of the court order to the Australian Securities and Investments Commission (ASIC). The scheme is expected to take effect soon after. Notably, significant milestones are on the horizon including a special dividend payout to Base shareholders scheduled for payment on October 1, 2024, prior to the implementation of the scheme on October 2, 2024.

Overview of the Toliara Project

The Toliara Project's development is subject to negotiating fiscal terms and obtaining permissions from the Madagascar government. Presently, activities at this project are suspended pending these negotiations and approvals. Upon completion of these requirements, Energy Fuels plans to swing into action with the development efforts, which are pivotal for enhancing the Company's asset base.

About Energy Fuels

Energy Fuels is recognized as a leading U.S.-based critical minerals company, primarily engaged in uranium production. The Company mines uranium to supply major nuclear utilities with natural uranium concentrates, supporting the generation of carbon-free energy. Notably, Energy Fuels initiated production of advanced rare earth elements in 2021, and it commenced commercial production of separated REEs earlier this year. It also evaluates the potential recovery of radionuclides necessary for innovative cancer treatments. The Company's main trading symbol is UUUU on the NYSE American. Furthermore, Energy Fuels' dynamic portfolio comprises significant uranium production centers, including the White Mesa Mill and the Nichols Ranch ISR Project.

Future Outlook

With the acquisition of Base Resources, Energy Fuels is poised for a strong position in the critical minerals market. The newly combined company is set to seize existing opportunities and harness synergies that can lead to enhanced productivity and growth. The expansion into the REE sector aligns perfectly with the growing demand for these minerals, especially as global markets shift toward renewable energy and sustainable practices.

Frequently Asked Questions

What is the significance of the Energy Fuels and Base Resources acquisition?

This acquisition will enhance Energy Fuels' offerings in the critical minerals sector and bolster their market position.

How will shareholders of Base Resources benefit from the acquisition?

Base shareholders will receive 0.026 Energy Fuels Common Shares for each share, plus a special dividend of AUD 0.065 per share.

What is the Toliara Project?

The Toliara Project is a key development area for Energy Fuels, aimed at extracting and producing valuable minerals, albeit subject to governmental negotiations.

What role does Energy Fuels play in uranium production?

Energy Fuels is a prominent uranium producer, supplying major nuclear utilities and contributing to sustainable energy solutions.

What future developments can we expect from Energy Fuels?

With the acquisition, Energy Fuels is expected to expand its critical mineral portfolio, enhance operations, and focus on rare earth element production to meet growing demand.

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