US Energy Fuels taps into Madagascar rare earths
Adds comment from US Energy Fuels, recasts, adds detail throughout
MELBOURNE, April 22 (Reuters) -U.S.-based uranium and rare earths producer Energy Fuels UUUU.A has bought a mineral sands miner with a project in Madagascar that will allow it to develop aglobal supply chain for rare earths.
The Denver-headquarteredproducer has agreed to buy Australia-listed miner Base Resources for A$375 million ($240.90 million), both companies said on Monday. Base owns the heavy minerals sands Toliara project in Madagascar.
The deal comes as Western producers diversify their supply chains for rare earths, which are used in everything from wind turbines to defense. The commodities are typically dominated by China.
Toliara producesa monazite stream as a byproduct of its titanium and zirconium production, from which rare earths can be extracted and processed at Energy Fuels' White Mesa Mill in Utah, Energy Fuels said.
Energy Fuels mines uranium in the United States which is processed at the mill, the only operating uranium mill in that countrythat can handle radioactive material.
It is commissioning a plant that can produce up to 1,000 tonnes per year of rare earths neodymium and praseodymium.
"Energy Fuels is currently engaged in high-level discussions with various U.S. government agencies and other offices who provide support for critical mineral projects, domestically and abroad," the company said in a statement.
Shares of Base Resources BSE.AX surged 100% to A$0.21 in early trading on Monday, with its two biggest shareholders backing the deal.
Base shareholders would get A$0.302 per share of the company under the deal, which will consist of 0.0260 shares of Energy Fuels along with an unfranked special dividend of A$0.065 for each Base share.
The transaction price represents a premium of 188% to Base Resources’ last closing price of A$0.105 per share on April 19.
($1 = 1.5567 Australian dollars)
Reporting by Melanie Burton in Melbourne and Poonam Behura; Editing by Kim Coghill, Jamie Freed and Gerry Doyle
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
