The board of Australian Strategic Materials (ASX: ASM) has unanimously backed the proposed takeover of the company by Denver-based global critical mineral specialist Energy Fuels for approximately $447 million.
Energy Fuels has moved to acquire 100% of the issued share capital of ASM at an implied value of $1.60 per ASM share.
This would comprise shareholders receiving 0.053 Energy Fuels shares or CHESS Depositary Interests for each ASM share held – implying a value of A$1.47 per ASM share – along with an unfranked special dividend of up to A$0.13 per ASM share, to be paid prior to implementation.
The offer represents a premium of 121% to ASM’s last closing share price and 133% to ASM’s 30-day volume-weighted average price.
Immediate and Attractive Premium
In announcing Energy Fuels' bid, the ASM board said the offer equates to immediate and attractive premium and gives ASM shareholders the ability to participate in significant future upside potential generated by the US company.
Energy Fuels is the largest producer of uranium in the US, and an emerging global leader in the processing and separation of rare earth elements with its White Mesa Mill in Utah the only conventional uranium mill operating in the US.
The Denver-based company also operates the Vara Mada project in south-west Madagascar where the Ranobe deposit is considered to be one of the best mineral sands development projects in the world.
ASM directors intend to vote in favour of the bid—including non-executive chair and largest shareholder Ian Gandel, who owns approximately 13.6% of ASM’s issued shares.
“We are pleased to recommend this transaction not only for the value it delivers but it accelerates the execution of our mine to metals strategy in a way that unlocks greater scale, de-risks delivery and positions us to capture the full potential of our rare-earths opportunity,” chief executive officer Rowena Smith said.
Ex-China Supply Option
ASM is developing its Dubbo project in central western NSW as a long-term, globally significant resource of rare earths, zirconium, niobium, and hafnium.
Dubbo is considered one the few supply options for critical metal oxides outside of China.
The ASM board said the proposed merger would establish a near-term Western focused “mine to metal & alloy” supply chain for both heavy and light rare earths with the ability to take rare earth element (REE) feedstock to REE alloys and metals.
This is not the first move by Energy Fuels on an Australian company after it acquired Vara Mada through the takeover of Base Resources in October 2024.
