Energy Fuels signs SID to acquire Australian Strategic Materials

Energy Fuels has signed a strategy implementation deed (SID) to afloat get the issued stock superior of Australian Strategic Materials (ASM).

The deal, valued astatine astir $299m, volition travel a strategy of statement nether Australian law.

This acquisition aims to make a important uncommon world constituent (REE) "mine-to-metal & alloy" shaper extracurricular China, focusing connected industries specified arsenic automotive, vigor and defence.

It volition integrate ASM's Korean Metals Plant (KMP) and the planned American Metals Plant with Energy Fuels' White Mesa Mill successful Utah, US.

ASM's KMP already produces assorted REE metals and alloys including neodymium-praseodymium, dysprosium, terbium metals and robust alloys.

By combining scalable separation processes with downstream conversion capabilities, the transaction aims to heighten vertical integration crossed the REE worth chain.

It addresses planetary proviso concatenation vulnerabilities related to downstream REE refining extracurricular China.

Energy Fuels besides sees ASM's Dubbo REE Project successful New South Wales arsenic a captious portion of its improvement pipeline, alongside existing projects successful Victoria, Madagascar and Brazil.

These projects are expected to proviso materials to grow White Mesa Mill’s accumulation capacity.

The upcoming American Metals Plant volition utilise exertion from ASM’s KMP to nutrient 2,000 tonnes per annum of alloys successful the US.

This acquisition builds connected Energy Fuels' erstwhile strategical efforts successful Australia, pursuing collaborations with Base Resources and Astron Corporation.

Energy Fuels CEO Mark Chalmers said: "Energy Fuels is executing our program to make the largest afloat integrated shaper of REE materials extracurricular of China, including REE oxides, metals and alloys, portion supporting US and allied captious mineral proviso chains.

“The projected acquisition of ASM brings america overmuch person to that extremity – to the payment of Energy Fuels' shareholders, ASM's shareholders and our valued customers.”

The transaction implies an equity valuation for ASM of astir A$447m.

ASM shareholders are acceptable to person shares successful Energy Fuels oregon CHESS Depository Interests, on with a peculiar dividend per share. Post-acquisition, they volition ain astir 5.8% of Energy Fuels.

Completion of the woody requires approvals from shareholders, the Federal Court of Australia, the Foreign Investment Review Board and applicable banal exchanges.

Financial advisory for Energy Fuels is being provided by Goldman Sachs, with ineligible proposal by Herbert Smith Freehills Kramer, among others.

Moelis Australia and Moelis & Company offered fiscal proposal to ASM, with A&O Shearman handling ineligible matters.