Energy Fuels to acquire Australian Strategic Materials to create new "mine-to-metal & alloy" rare-earth champion

Strategic Rationale - Energy Fuels aims to create the largest fully integrated producer of rare earth elements (REE) materials outside of China, enhancing U.S. and allied critical mineral supply chains through the acquisition of Australian Strategic Materials (ASM) [3][6] - The transaction implies an equity value of approximately A$447 million (US$299 million) for ASM, with a total implied value of A$1.60 per ASM share, which includes 0.053 Energy Fuels shares and a special dividend of up to A$0.13 per ASM share [2][7] Integration and Growth Opportunities - The acquisition will combine ASM's Korean Metals Plant, which produces REE metals and alloys, with Energy Fuels' existing REE oxide production at the White Mesa Mill in Utah, enhancing vertical integration and market share across the REE value chain [4][6] - The Dubbo Project in New South Wales, Australia, will provide additional long-term REE development opportunities, complementing Energy Fuels' existing projects in Victoria, Madagascar, and Brazil [6][12] Financial and Operational Impact - The transaction is expected to be accretive on net asset value per share (NAVPS) and create significant value through margin uplift, ultimately translating into increased margins, cash flows, and market share for Energy Fuels [5][7] - Post-closing, ASM shareholders will own approximately 5.8% of Energy Fuels' outstanding shares, indicating a strategic alignment of interests between the two companies [8][9] Regulatory and Approval Process - The transaction is subject to various approvals, including ASM shareholder approval, Federal Court of Australia approval, and regulatory approval from Australia's Foreign Investment Review Board [11][12] - ASM plans to hold its scheme meeting in late May or early June 2026, with the transaction expected to close in late June 2026, pending all conditions are satisfied [12]