Energy Fuels Inc. receives overwhelming approval for acquisition of Base Resources

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR), a leader in uranium and rare earth elements (REE) production, has achieved a significant milestone in its strategic expansion with the overwhelming approval of its acquisition of Base Resources Limited. The pivotal vote, held on September 5, 2024, in Perth, Australia, marks a crucial step in Energy Fuels’ efforts to enhance its global footprint in the clean energy sector.

Landmark Shareholder Vote Confirms Acquisition

At the special meeting, Base Resources shareholders demonstrated strong support for the transaction, with an impressive 99.88% of the votes cast in favor. The approval exceeded the necessary thresholds, significantly surpassing the 75% vote requirement and the 50% minimum shareholder presence. This robust endorsement positions Energy Fuels for a transformative shift in its operations and market positioning.

The next procedural step involves the Federal Court of Australia, which is slated to review and approve the scheme on September 12, 2024. Provided the court grants approval, the acquisition will become effective on September 13, 2024, marking Base Resources’ final day of trading on the Australian Stock Exchange (ASX). A special dividend of AUD $0.065 per share is set to be distributed to shareholders on October 1, 2024, with the final closing of the transaction anticipated for October 2, 2024.

Regulatory Approvals Secured Across Multiple Jurisdictions

The acquisition’s progress has been bolstered by the receipt of all necessary regulatory approvals. On July 1, 2024, Base Resources secured clearance from the Competition Authority of Kenya. Subsequent approvals came from the Australian Foreign Investment Review Board on August 21, 2024, and from the Malagasy Competition Council on August 27, 2024. These endorsements ensure that the transaction meets all regulatory requirements, paving the way for a smooth integration process.

Strategic Implications of the Acquisition

The integration of Base Resources represents a transformative opportunity for Energy Fuels, positioning the company as a leading global player in the production of REE, titanium, and zirconium. The acquisition encompasses Base Resources’ 100%-owned Toliara Mineral Sand Project in Madagascar, the Bahia Mineral Sand Project in Brazil, and a joint venture with Astron Corporation for the Donald Mineral Sand Project in Australia.

These projects are poised to significantly enhance Energy Fuels’ production capabilities. The Toliara Project, a major asset in the acquisition, is expected to deliver substantial quantities of monazite sand, a critical source of rare earth elements used in technologies such as electric vehicles (EVs), direct-drive wind turbines, and high-efficiency motors. The Bahia and Donald projects will further augment Energy Fuels’ production portfolio with titanium and zirconium minerals.

Advancements in REE Production

Energy Fuels has recently made notable advancements in its REE production capabilities. In Q2 and Q3 of 2024, the company successfully commissioned a new REE separation circuit at its White Mesa Mill, capable of producing up to 1,000 metric tons of separated neodymium-praseodymium (NdPr) annually. The initial phase of this circuit has already yielded approximately 50 to 60 tonnes of high-purity NdPr, surpassing the company’s initial production guidance of 25 to 35 tonnes.

This achievement underscores Energy Fuels’ commitment to enhancing its REE production capacity and solidifies its position in the competitive global market for rare earth elements.

Focus Shifts to Uranium Production

Looking ahead, Energy Fuels plans to shift its focus from REE to uranium production for the remainder of 2024. The company projects a production range of 150,000 to 500,000 pounds of U3O8 from stockpiled alternate feed materials and conventional ore. Concurrently, development at the Pinyon Plain and La Sal mines is progressing as scheduled and on budget.

This strategic pivot reflects Energy Fuels’ balanced approach to maintaining its leadership in uranium production while expanding its capabilities in rare earth elements.