Energy Fuels To Acquire Base Resources, Upping Critical Minerals Production

Energy Fuels Inc., a top U.S. producer of uranium, rare earth elements (REEs), and vanadium, announced that it will acquire Base Resources Limited. Energy Fuels made the move to bolster its position as a global leader in the production of critical minerals, particularly focusing on uranium, REEs, and heavy mineral sands. The deal stands at a total equity value of approximately $375 million.

The acquisition will include the Toliara heavy mineral sands project in Madagascar, wholly owned by Base Resources. The project produces a high-value, low-cost monazite stream as a byproduct of its primary titanium and zirconium production. The Toliara monazite production will be processed at Energy Fuels’ White Mesa Mill into separated REEs at an affordable cost. The agreement will secure Base Resources’ mine development and operations team, praised for their successful track record in Africa.

Senior Senator from Utah, Mike Lee, said: “I’m grateful to Energy Fuels for their work to ensure the United States has a domestic critical mineral source. The acquisition of Base Resources and the Toliara project will only further their capacity and ability to produce minerals needed for defense, technology, and everyday life.”

The transaction stands to complement and strengthen Energy Fuels’ leading uranium production capabilities and plans. In parallel, the firm is currently participating in discussions with various U.S. government offices that support critical mineral projects, both domestically and internationally.

The CEO of Energy Fuels, Mark S. Chalmers, stated: “The acquisition of Base Resources and the Toliara project represents a monumental leap forward for the Company, as we continue to execute on a truly revolutionary REE, uranium and critical mineral combined strategy. For the past four-plus years, Energy Fuels has innovated a new way to produce critical minerals, that we believe is more cost competitive than traditional approaches, by leveraging our uranium processing expertise and infrastructure to develop a secure, U.S.-centric REE oxide supply chain.”

Base Resources’ Managing Director, Tim Carstens, added: “This transaction…will have the financial and technical capability to not only build Toliara into one of the best critical mineral projects in the world, but also to develop an integrated value chain for the rare earth elements that are essential to the global energy transition. Shareholders of Base Resources will receive both a compelling and immediate premium, and the opportunity to further participate in the market…development of a company with a unique diversified position in the critical minerals landscape.”

Sources: Press Release