Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) has received shareholder approval for its acquisition of Base Resources at a special meeting held in Perth, Australia. All necessary regulatory approvals for the transaction have also been obtained.
Mark S. Chalmers, president and CEO of Lakewood-based Energy Fuels, said, “We are pleased that the Base shareholders voted overwhelmingly to approve Energy Fuels’ combination with Base Resources. We believe that the combined company will clearly emerge as a world-leader in producing several of the critical minerals and materials needed for the clean energy transition.” The integration is expected to enhance Energy Fuels’ capacity as a producer of rare earth elements (REE), titanium and zirconium while retaining its status as a leading U.S. uranium producer.
In a significant vote, 99.88% of Base shareholders approved the acquisition, with 93.18% present and voting in favor. Both results exceed the required thresholds for approval. The next step is for Base to seek approval from the Federal Court of Australia, with a hearing scheduled for Sept. 12, 2024. If approved, the scheme is expected to take effect on Sept. 13, 2024, marking the last trading day for Base on the Australian Stock Exchange. A special dividend of AUD $0.065 per Base share is expected to be paid on Oct, 1, 2024, with the transaction’s closing anticipated for Oct. 2, 2024.
All requisite regulatory approvals have been met, with the Competition Authority of Kenya, the Foreign Investment Review Board of Australia, and the Malagasy Competition Council granting their consent for the acquisition. Energy Fuels’ acquisition includes Base’s Toliara Mineral Sand Project in Madagascar, the Bahia Mineral Sand Project in Brazil, and a joint venture with Astron Corp. for the Donald Mineral Sand Project in Australia. These projects aim to produce heavy mineral sands, along with valuable byproducts like monazite sand.