#USA #Denver #Energy Fuels #Rare Earth Elements #Australian Strategic Materials

Energy Fuels to Acquire Australian Strategic Materials

Energy Fuels Inc. (NYSE: UUUU, TSX: EFR), a prominent U.S. producer of uranium and rare earth elements (REE), has announced its intention to acquire Australian Strategic Materials Limited (ASX: ASM). This strategic acquisition is valued at approximately $299 million and marks a significant milestone for Energy Fuels as it aims to establish a leading position in the global rare earth market.

Strategic Rationale

The acquisition will bring together the operating Korean Metals Plant (KMP) and the planned American Metals Plant (AMP) of ASM with Energy Fuels' existing REE oxide production capabilities at the White Mesa Mill in Utah. This will create what the company anticipates to be the largest fully-integrated producer of REE materials outside of China. The merger is expected to fill a critical gap in the global supply chain for rare earth magnets, which are essential in various high-tech applications including automotive, robotics, energy, and defense technologies.

Currently, the White Mesa Mill stands as the sole U.S. facility capable of separating monazite concentrates into both light and heavy REE oxides. These oxides are intended for use in ASM's metallization and alloying facilities in both South Korea and the United States. This dual operational base positions Energy Fuels to significantly enhance its production capacity while addressing a significant challenge in the supply chain for downstream REE refining and processing, which has historically been dominated by China.

ASM’s Contributions

The Australian Strategic Materials (ASM) operates one of the few facilities globally that produces essential REE metals and alloys such as neodymium-praseodymium (NdPr), dysprosium (Dy), and terbium (Tb). This enables Energy Fuels to integrate low-cost, scalable REE separation with downstream metal and alloy conversion processes. As a result, Energy Fuels anticipates a robust improvement in vertical integration, which will enhance its market share and profitability across the REE value chain.

Additionally, ASM's Dubbo REE Project in New South Wales, Australia, bolsters Energy Fuels' development pipeline, which already includes projects in Victoria, Madagascar, and Brazil aimed at supplying feed materials for an increased output at the White Mesa Mill. The goal is to produce 6,000 tonnes per annum of neodymium-praseodymium oxides, alongside quantified outputs for dysprosium and terbium oxides.

Future Growth Potential

The planned American Metals Plant is envisioned to further solidify the operational framework necessary for producing significant quantities of REE metals and alloys domestically. By utilizing the technology and intellectual property from ASM's KMP, Energy Fuels can serve its customers more effectively, aligning its operations with the rising demand for domestic REE supplies.

In the words of Mark S. Chalmers, CEO of Energy Fuels, "This acquisition brings us closer to our goal of being the largest fully integrated producer of REE materials outside of China, contributing to the stabilization of U.S. and allied critical mineral supply chains. Our goal is to offer an expanded suite of REE products that meet a growing market demand."

Transaction Details and Next Steps

The acquisition will result in ASM shareholders receiving a combination of Energy Fuels shares and cash, with an implied equity value estimate of A$447 million. The deal is designed to be advantageous, with Energy Fuels positioning itself to accelerate its growth in the critical mineral sector, which is increasingly vital due to geopolitical uncertainties and the push for cleaner technologies.

ASM's board has unanimously endorsed the acquisition, and the transaction is contingent upon regulatory approvals and shareholder consent. A shareholders' meeting is expected to be scheduled for mid-2026, further determining the future course of this groundbreaking partnership.

Energy Fuels' commitment to developing rare earth resources in Australia reflects its broader strategy to enhance the survivability and competitiveness of U.S. supply chains for critical minerals. As the world moves towards greener technologies, the importance of securing reliable sources of rare earth materials continues to grow, and this acquisition positions Energy Fuels as a leader in that endeavor.