Energy Fuels has signed a scheme implementation deed (SID) to fully acquire the issued share capital of Australian Strategic Materials (ASM).
The deal, valued at approximately $299m, will follow a scheme of arrangement under Australian law.
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This acquisition aims to create a significant rare earth element (REE) “mine-to-metal & alloy” producer outside China, focusing on industries such as automotive, energy and defence.
It will integrate ASM’s Korean Metals Plant (KMP) and the planned American Metals Plant with Energy Fuels’ White Mesa Mill in Utah, US.
ASM’s KMP already produces various REE metals and alloys including neodymium-praseodymium, dysprosium, terbium metals and iron alloys.
By combining scalable separation processes with downstream conversion capabilities, the transaction aims to enhance vertical integration across the REE value chain.
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By GlobalDataIt addresses global supply chain vulnerabilities related to downstream REE refining outside China.
Energy Fuels also sees ASM’s Dubbo REE Project in New South Wales as a vital part of its development pipeline, alongside existing projects in Victoria, Madagascar and Brazil.
These projects are expected to supply materials to expand White Mesa Mill’s production capacity.
The upcoming American Metals Plant will utilise technology from ASM’s KMP to produce 2,000 tonnes per annum of alloys in the US.
This acquisition builds on Energy Fuels’ previous strategic efforts in Australia, following collaborations with Base Resources and Astron Corporation.
Energy Fuels CEO Mark Chalmers said: “Energy Fuels is executing our plan to create the largest fully integrated producer of REE materials outside of China, including REE oxides, metals and alloys, while supporting US and allied critical mineral supply chains.
“The proposed acquisition of ASM brings us much closer to that goal – to the benefit of Energy Fuels’ shareholders, ASM’s shareholders and our valued customers.”
The transaction implies an equity valuation for ASM of nearly A$447m.
ASM shareholders are set to receive shares in Energy Fuels or CHESS Depository Interests, along with a special dividend per share. Post-acquisition, they will own around 5.8% of Energy Fuels.
Completion of the deal requires approvals from shareholders, the Federal Court of Australia, the Foreign Investment Review Board and relevant stock exchanges.
Financial advisory for Energy Fuels is being provided by Goldman Sachs, with legal advice by Herbert Smith Freehills Kramer, among others.
Moelis Australia and Moelis & Company offered financial advice to ASM, with A&O Shearman handling legal matters.
In October 2024, Energy Fuels closed the acquisition of Australian critical mineral company Base Resources in a deal valued at approximately $178.4m.
