Energy Fuels to Acquire Australian Strategic Materials

Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) and Australian Strategic Materials (ASX:ASM,OTCPL:ASMMF) have penned a scheme implementation deed, with Energy Fuels proposing to acquire Australian Strategic.

The acquisition is intended to create a new “mine to metal and alloy rare earths champion” and includes Australian Strategic's Dubbo rare earths project and its flagship Korean metals plant.

Dubbo has already secured all necessary permits and is currently waiting on a final investment decision and commencement of construction. Its reserves support an initial mine life of 20 years.

Meanwhile, the Korean metals plant (KMP) has been operational since 2022 and is now in Phase 1 commissioning, with an installed capacity of 1,300 metric tons per year of neodymium iron boron alloy.

Energy Fuels said the transaction will combine Australian Strategic's KMP and its planned American metals plant with Energy Fuels’ existing rare earths oxide capability at its White Mesa mill in Utah for greater vertical integration.

"The transaction will enable a wider product range — including REE oxides, metals, and alloys — serving customers across the U.S., Asia, and Europe," the company states on its website.

According to the announcement, shareholders of Australian Strategic will receive an implied value of AU$1.60 per share, a 121 percent premium to the company's last closing price. Currently listed in Canada and the US, Energy Fuels has agreed to list on the ASX so shareholders can still trade shares via CHESS depositary interests.

“Following the transaction, ASM will have access to enhanced funding capacity and reduced execution risk through participation in a larger, better capitalised group,” the announcement reads.

A meeting to vote on the scheme is expected to be held in the second quarter of the 2026 calendar year. Australian Strategic said its board of directors unanimously recommends that shareholders vote in favor of the scheme.

Subject to shareholder and court approvals, implementation of the scheme is expected before June 30 of this year.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.