Energy Fuels shares down 10% after announcing deal for Base Resources

By CP22 Apr 2024The Canadian Press1 Mins read66

The front entrance at the Energy Fuels Inc. uranium Pinyon Plain Mine is shown on Wednesday, Jan. 31, 2024, near Tusayan, Ariz. The largest uranium producer in the United States is ramping up work just south of Grand Canyon National Park on a long-contested project that largely has sat dormant since the 1980s. (AP Photo/Ross D. Franklin)

TORONTO — Shares of Energy Fuels Inc. were down 10 per cent in late-morning trading after the company announced a deal to buy Base Resources Ltd.

The Toronto-listed company says the stock-and-cash deal for the Australian company was valued at about $375 million (Australian).

Base Resources’ main asset is the Toliara heavy mineral sands project in Madagascar.

Under the terms of the proposed agreement, Base Resources shareholders will receive 0.026 of an Energy Fuels common share and 6.5 Australian cents per share, representing an implied price of 30 Australian cents per Base Resources share.

Base Resources shareholders will own a 16.4 per cent stake in the combined company.

Energy Fuels shares were down 86 cents or 10.7 per cent at $7.20 in trading on the Toronto Stock Exchange.

This report by The Canadian Press was first published April 22, 2024.

Companies in this story: (TSX:EFR)

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