06:54 AM EDT, 04/22/2024 (MT Newswires) -- Energy Fuels ( UUUU ) agreed to acquire Australia-listed Base Resources for a total equity value of about A$375 million ($331 million).

The deal value is composed of 0.0260 Energy Fuels ( UUUU ) common shares and A$0.065 in cash, payable through a Base Resources special dividend, for each Base Resources ordinary share held. Energy Fuels ( UUUU ) at last look fell 1% in US pre-market trading to US$5.78 per share.

The deal is complementary to and further strengthens Energy Fuels' ( UUUU ) uranium production capability and plans, the company said.

The acquisition will include Base Resources' Toliara advanced-stage heavy mineral sands project in Madagascar, which includes a monazite stream, produced as a byproduct of primary titanium and zirconium production. Monazite produced at Toliara will be processed at Energy Fuels' ( UUUU ) White Mesa Mill into separated rare earth element (REE) oxides.

The transaction will also secure Base Resources' mine development and operations team, which have a track record of operating a heavy mineral sands operation in Africa.

In addition, Energy Fuels ( UUUU ) said it is engaged in high-level discussions with US government agencies and other offices who provide support for critical mineral projects, both domestically and abroad. Support may include grants, low-interest debt or loan guarantees.

"We plan to supply REE oxides to US, European and Asian [electric vehicle], wind energy and other clean energy manufacturers, along with emerging commercial REE metal-making, alloying, and magnet-making facilities now under development in the US," said Mark Chalmers, president and CEO of Energy Fuels ( UUUU ). "We also plan to be a reliable supplier to the US defense industry, which could include offtake for other REE oxides, besides the 'magnet' oxides, contained in monazite."