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Energy fuels (NYSE:UUUU) -1.2% in premarket Monday after saying it agreed to acquire Africa-focused mineral sands producer and developer Base Resources (OTCPK:BSRUF) in a cash and stock deal for a total equity value of ~A$375 million .
Base Resources (OTCPK:BSRUF) shareholders will receive 0.026 of an energy fuel (UUUU) share for each of its shares, plus a special dividend of A$06.5/share in cash.
The key element of the deal is Base Resources’ (OTCPK:BSRUF) Toliara project in Madagascar, an late-stage, low-cost, large-scale heavy mineral sands project containing production capacity for ilmenite, titanium and zirconium, as well as large quantities of monazite.
Toliara’s monazite production will be processed at Energy Fuels’ (UUUU) White Mesa facility into separated rare earth oxides, “creating a new paradigm for low-cost, globally competitive rare earth oxide production centered on United States,” the companies said.
Base Resources (OTCPK:BSRUF) shareholders will own approximately 16.4% of the combined company, which will have a pro forma market capitalization of approximately $1.14 billion.