Energy Fuels Acquires Chemours REE Assets
Ticker: UUUU · Form: 8-K · Filed: Oct 3, 2024 · CIK: 1385849
Sentiment: neutral
Topics: acquisition, rare-earth-elements, mining
Related Tickers: CC
TL;DR
Energy Fuels just bought a rare earth processing circuit from Chemours to boost its REE game.
AI Summary
Energy Fuels Inc. announced on October 3, 2024, the completion of its acquisition of certain assets from a subsidiary of The Chemours Company. The transaction, which closed on October 2, 2024, involves the acquisition of a rare earth element ("REE") circuit and related assets at Energy Fuels' White Mesa Mill in Utah. This strategic move is expected to enhance Energy Fuels' position in the REE market.
Why It Matters
This acquisition strengthens Energy Fuels' capabilities in processing rare earth elements, a critical component for advanced technologies and national security, potentially positioning them as a key domestic supplier.
Risk Assessment
Risk Level: medium — The acquisition involves integrating new assets and operations, which carries inherent integration and operational risks, alongside market volatility in the rare earth sector.
Key Players & Entities
- Energy Fuels Inc. (company) — Acquiring company
- The Chemours Company (company) — Seller of assets
- October 3, 2024 (date) — Announcement date
- October 2, 2024 (date) — Closing date of transaction
- White Mesa Mill (location) — Location of acquired assets
FAQ
What specific assets were acquired from The Chemours Company?
Energy Fuels Inc. acquired a rare earth element ("REE") circuit and related assets located at its White Mesa Mill in Utah.
When did the acquisition officially close?
The transaction closed on October 2, 2024.
What is the strategic significance of this acquisition for Energy Fuels?
The acquisition is expected to enhance Energy Fuels' capabilities in the rare earth element market and strengthen its position as a domestic supplier.
Where are the acquired assets located?
The acquired rare earth element circuit and related assets are located at Energy Fuels' White Mesa Mill in Utah.
What type of assets were acquired?
The acquired assets are related to the processing of rare earth elements (REEs).
Filing Stats: 809 words · 3 min read · ~3 pages · Grade level 10.8 · Accepted 2024-10-03 16:11:18
Key Financial Figures
- $0.065 — the "Share Consideration"), and (ii) AUS$0.065 in cash, paid by way of a special divid
- $178.4 million — ued by Energy Fuels was approximately US$178.4 million and the total special dividend value wa
- $55.1 million — cial dividend value was approximately US$55.1 million. Holders of ordinary shares of Base Res
Filing Documents
- form8k.htm (8-K) — 18KB
- exhibit23-1.htm (EX-23.1) — 2KB
- exhibit99-1.htm (EX-99.1) — 612KB
- exhibit99-2.htm (EX-99.2) — 295KB
- exhibit23-1xu001.jpg (GRAPHIC) — 4KB
- exhibit99-1xu001.jpg (GRAPHIC) — 10KB
- exhibit99-1xu002.jpg (GRAPHIC) — 3KB
- exhibit99-1xu003.jpg (GRAPHIC) — 3KB
- 0001062993-24-017380.txt ( ) — 1244KB
- efr-20241003.xsd (EX-101.SCH) — 5KB
- efr-20241003_cal.xml (EX-101.CAL) — 1KB
- efr-20241003_def.xml (EX-101.DEF) — 22KB
- efr-20241003_lab.xml (EX-101.LAB) — 46KB
- efr-20241003_pre.xml (EX-101.PRE) — 25KB
- form8k_htm.xml (XML) — 3KB
01. Completion of Acquisition or Disposition of Assets
Item 2.01. Completion of Acquisition or Disposition of Assets. On October 2, 2024, EFR Australia Pty Ltd ("EFR"), a wholly owned subsidiary of Energy Fuels Inc. (the "Company"), completed the acquisition of all of the fully paid ordinary shares of Base Resources Limited ("Base Resources") pursuant to a Scheme Implementation Deed dated April 21, 2024 by and among the Company, EFR and Base Resources (the "Deed"). Under the Deed, at closing, each holder of ordinary shares of Base Resources received consideration of (i) 0.0260 Company's common shares for each Base Resources share held on the Scheme Record Date (being 5 pm Perth, Australia time on Wednesday, September 18, 2024) (the "Share Consideration"), and (ii) AUS$0.065 in cash, paid by way of a special dividend by Base Resources to its shareholders. The total Share Consideration issued by Energy Fuels was approximately US$178.4 million and the total special dividend value was approximately US$55.1 million. Holders of ordinary shares of Base Resources that reside in certain jurisdictions will receive the net proceeds from the sale made by a nominee of the Company's common shares in lieu of the Share Consideration. The foregoing description of the Deed does not purport to be complete and is qualified in its entirety by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 25, 2024 , which is incorporated herein by reference.
01. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits. (a) Financial Statements of Business or Funds Acquired. The audited consolidated financial statements of Base Resources for the year ended June 30, 2024 and June 30, 2023 and the notes thereto are filed as Exhibit 99.1 hereto and incorporated by reference herein, as required by Rule 3-05 of Regulation S-X. (b) Pro Forma Financial Information. The unaudited pro forma condensed combined balance sheet as of June 30, 2024 and the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2023 and the six months ended June 30, 2024 and the notes thereto are filed as Exhibit 99.2 hereto and incorporated by reference herein, as required by Article 11 of Regulation S-X. (d) Exhibits. Exhibit No. Description 23.1 Consent of KPMG 99.1 Audited Consolidated Financial Statements of Base Resources Limited as of and for the years ended June 30, 2024 and June 30, 2023 99.2 Unaudited pro forma condensed combined balance sheet as of June 30, 2024 and unaudited pro forma condensed combined statement of operations for the year ended December 31, 2023 and the six months ended June 30, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ENERGY FUELS INC. (Registrant) October 3, 2024 By: /s/ David C. Frydenlund David C. Frydenlund Executive Vice President, Chief Legal Officer and Corporate Secretary