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Energy Fuels (NYSE:UUUU) -1.2% pre-market Monday after saying it agreed to acquire Africa-focused mineral sands producer and developer Base Resources (OTCPK:BSRUF) in a cash and stock deal with a total equity value of ~A$375M.
Base Resources (OTCPK:BSRUF) shareholders will receive 0.026 of an Energy Fuels (UUUU) share for each of its own shares, plus a special dividend of A$0.065/share in cash.
The key asset in the deal is Base Resources' (OTCPK:BSRUF) Toliara project in Madagascar, an advanced-stage, low-cost and large-scale heavy mineral sands project, which contains ilmenite, titanium and zirconium production capability, as well as large quantities of monazite.
Toliara's monazite production will be processed at Energy Fuels' (UUUU) White Mesa mill into separated rare earth element oxides, "setting a new paradigm for low-cost, globally competitive U.S.-centered rare earth oxide production," the companies said.
Base Resources (OTCPK:BSRUF) shareholders will hold ~16.4% of the combined company, which will have a pro forma market capitalization of ~US$1.14B.