Energy Fuels to Buy Australian Strategic Materials in A$447m Rare Earths Deal

An update from Australian Strategic Materials Ltd ( (AU:ASM) ) is now available.

Energy Fuels Inc. has agreed to acquire 100% of Australian Strategic Materials via a court-approved scheme of arrangement, valuing ASM at an implied A$1.60 per share, or about A$447 million on a fully diluted basis, through a mix of Energy Fuels stock (or ASX-listed CDIs) and an unfranked special dividend of up to A$0.13 per share. The deal, unanimously recommended by ASM’s board and supported by directors holding about 13.8% of the company, offers shareholders a premium of more than 120% to the last closing price and includes a concurrent cash offer for listed options, while positioning the combined business as a near-term Western rare earths “mine to metal and alloy” champion with enhanced funding capacity, reduced execution risk and diversified exposure to uranium, rare earths and vanadium, supported by an Energy Fuels secondary ASX listing for ongoing investor access.

The most recent analyst rating on (AU:ASM) stock is a Sell with a A$0.68 price target. To see the full list of analyst forecasts on Australian Strategic Materials Ltd stock, see the AU:ASM Stock Forecast page.

More about Australian Strategic Materials Ltd

Australian Strategic Materials Ltd (ASM) is an Australian rare earths and critical minerals company focused on developing a Western-integrated “mine to metal and alloy” supply chain for both heavy and light rare earth elements. The company’s strategy targets downstream processing into rare earth metals and alloys, aligning with U.S.-Australian critical minerals objectives and catering to markets seeking secure, non-Chinese sources of strategic materials.

Average Trading Volume: 2,173,246

Technical Sentiment Signal: Hold

Current Market Cap: A$191.7M

See more insights into ASM stock on TipRanks’ Stock Analysis page.