Base Resources soars 90% on merger news with Energy Fuels to forge global minerals leader
0Base Resources Ltd (ASX:BSE LON:BSE) managing director Tim Carstens sits down with Jonathan Jackson in the Proactive studio to discuss a significant merger with US-based Energy Fuels, which led to a nearly 90% surge in its stock price. This merger aims to establish a global critical minerals business. Base shareholders are set to receive shares and a special dividend, totalling approximately A$0.302 (15.7p) per share, marking a 188% premium over the last closing price.
Two major shareholders, holding 26.5% and 24.8% of Base's shares, have confirmed their support for the merger. The development of the Toliara project in Madagascar will be a primary focus for the new entity, with plans to process future monazite production at Energy Fuels' operational White Mesa mill in the US.
Management of Base Resources will continue to oversee the Toliara project and manage the completion and closure of operations at the Kwale site in Kenya. The deal values Base Resources' equity at A$375 million (£195 million).
Carstens highlights that the merger, which was the result of 12 months of discussions, would enhance financial and technical capabilities. This would position Toliara as a top project for critical minerals essential for the global energy transition, integrating a value chain for rare earth elements.
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