Federal Court of Australia Approves Transformational Acquisition of Base Resources Combination expected to close on
Federal Court of Australia Approves Transformational Acquisition
of Base Resources
Combination expected to close on
October 2, 2024
DENVER
,
Sept. 12, 2024
/CNW/ -
Energy Fuels Inc.
(NYSE American: UUUU) (TSX: EFR)
("Energy Fuels" or the "Company"),
an industry
leader in uranium and rare earth elements ("
REE
") production for the energy transition, is pleased to announce that the Federal Court of
Australia
(the "
Court
") has today made orders approving the proposed acquisition of Base Resources Limited ("
Base
") by Energy Fuels by
way of a scheme of arrangement under
Australia's
Corporations Act (the "
Scheme
").
As previously announced on
April 21, 2024
, under the Scheme, Energy Fuels will acquire 100% of the issued shares of Base in consideration of
the issuance by the Company of 0.026 Energy Fuels Common Shares for every Base share held and the payment by Base of a special
dividend of AUD
$0.065
per Base share.
Mark S. Chalmers
, President and CEO of Energy Fuels stated:
"I am very pleased that the Court has approved Energy Fuels' combination
with Base Resources. This approval is the final approval required before closing, which is expected to occur on
October 2, 2024
. We look
forward to developing the world-class Toliara Project with Base's experienced team as a major step in our development of a world-class critical
minerals company at a time when geopolitics is making domestic supply chains more important than ever. I am also very pleased to see that
the recent improvements in REE prices are continuing, with the price of NdPr now at approximately
$59.60
per kilogram."
As a next step, a copy of the Court order will be lodged with the Australian Securities and Investments Commission ("
ASIC
") and the Scheme
will become effective, which is expected to occur on September 13, 2024. As a result, September 13, 2024, is expected to be Base's last day
of trading on the Australian Stock Exchange ("
ASX
"). The Special Dividend (AUD$0.065 per share) is expected to be paid to Base shareholders
on October 1, 2024, and implementation of the Scheme is expected to occur on October 2, 2024.
The Toliara Project is subject to negotiation of fiscal terms with the Madagascar government and the receipt of certain Madagascar
government approvals and actions before a current suspension on activities at the Toliara Project will be lifted and development may occur.
ABOUT ENERGY FUELS
Energy Fuels is a leading US-based critical minerals company. The Company, as a leading producer of uranium in the
United States
, mines
uranium and produces natural uranium concentrates that are sold to major nuclear utilities for the production of carbon-free nuclear energy.
Energy Fuels recently began production of advanced rare earth element ("
REE
") materials, including mixed REE carbonate in 2021, and
commenced production of commercial quantities of separated REEs in 2024. Energy Fuels also produces vanadium from certain of its
projects, as market conditions warrant, and is evaluating the recovery of radionuclides needed for emerging cancer treatments. Its corporate
offices are in Lakewood,
Colorado
, near Denver, and substantially all its assets and employees are in the
United States
. Energy Fuels holds
two of America's key uranium production centers: the White Mesa Mill in Utah and the Nichols Ranch in-situ recovery ("
ISR
") Project
in Wyoming. The White Mesa Mill is the only conventional uranium mill operating in the US today, has a licensed capacity of over 8 million
pounds of U
3
O
8
per year, and has the ability to produce vanadium when market conditions warrant, as well as REE products, from various
uranium-bearing ores. The Nichols Ranch ISR Project is on standby and has a licensed capacity of 2 million pounds of U
3
O
8
per year. The
Company recently acquired the Bahia Project in Brazil and entered into a joint venture agreement to develop the Donald Project in Australia,
each of which is believed to have significant quantities of titanium (ilmenite and rutile), zirconium (zircon) and REE (monazite) minerals. In
addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the
US and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The
primary trading market for Energy Fuels' common shares is the NYSE American under the trading symbol "UUUU," and the Company's
common shares are also listed on the Toronto Stock Exchange under the trading symbol "EFR." Energy Fuels' website is
www.energyfuels.com
.
Cautionary Note Regarding Forward-Looking Statements:
This news release contains certain "Forward Looking Information" and
"Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are
not limited to, statements with respect to: any expectation that the Company will maintain its position as a leading U.S.-based critical minerals
company or as a leading producer of uranium in the U.S.; any expectation that the acquisition of Base Resources will be completed or if
completed, completed on the terms and time proposed; any expectation that Energy Fuels will be successful in agreeing on fiscal terms with
the Government of
Madagascar
or in achieving sufficient fiscal and legal stability for the Toliara Project, if acquired; any expectation that the
current suspension relating to the Toliara Project will be lifted in the near future or at all; any expectation that the
Toliara Project will be
developed; any expectation that the Company will become a world-class critical minerals hub; and any expectation that the Company's
evaluation of radioisotope recovery at the Mill will be successful. Generally, these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates,"
"forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions,
events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other
than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that
could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with:
commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and
licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of feed sources for the Mill;
competition from other producers; public opinion; government and political actions; the failure of the Company to complete the acquisition of
Base Resources; the failure of the Government of Madagascar to agree on fiscal terms for the Toliara Project or provide the approvals
necessary to achieve sufficient fiscal and legal stability on acceptable terms and conditions or at all; the failure of the current suspension
affecting the Toliara Project to be lifted on a timely basis or at all; the failure of the Company to provide or obtain the necessary financing
required to develop Toliara Project and the Company's other projects; available supplies of monazite; the ability of the Mill to produce REE
carbonate, REE oxides or other REE products to meet commercial specifications on a commercial scale at acceptable costs or at all; market
factors, including future demand for heavy mineral sands and/or REEs; actual results may differ from all such estimates and projections; the
ability of the Mill to recover radium or other radioisotopes at reasonable costs or at all; market prices and demand for medical isotopes; and
the other factors described under the caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is
available for review on EDGAR at
www.sec.gov/edgar
, on SEDAR+ at
www.sedarplus.ca
, and on the Company's website at
www.energyfuels.com
. Forward-looking statements contained herein are made as of the date of this news release, and the Company
disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information,
results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance
that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in
such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no
obligation to update the information in this communication, except as otherwise required by law.
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SOURCE
Energy Fuels Inc.
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For further information:
For further information: Investor Inquiries: Energy Fuels Inc., Kim Ronkin Casey, Investor Relations Manager, 303-
389-4165 or Toll free: (888) 864-2125, [email protected], www.energyfuels.com
CO: Energy Fuels Inc.
CNW 08:19e 12-SEP-24