The acquisition is intended to enable Energy Fuels to create a new “mine-to-metal and alloy rare earths champion” and includes Australian Strategic Materials’ Dubbo rare earths project and its flagship Korean metals plant.
Dubbo has already obtained all necessary permits and is currently awaiting a final investment decision and start of construction.
The reserves support an initial mine life of 20 years.
Meanwhile, the Korean Metal Plant (KMP) has been operational since 2022 and is now in phase 1 commissioning with an installed capacity of 1,300 tons of neodymium-iron-boron alloy per year.
Energy Fuels listed on are website that the transaction will combine ASM’s KMP and planned American Metals Plant (AMP) with Energy Fuels’ existing REE oxide capacity at the White Mesa Mill in Utah, for greater vertical integration across the supply chain.
“(It) will (also) enable a broader product range – including REE oxides, metals and alloys – serving customers in the US, Asia and Europe.”
According to the announcementASM shareholders will receive an implied value of AU$1.60 per share, a 121 percent premium to ASM’s last closing price.
Energy Fuels is currently listed in Canada and the US and has agreed to list on the ASX so shareholders can still trade shares through CHESS’s custodians.
“Following the transaction, ASM will have access to increased financing capacity and reduced execution risk through participation in a larger, better capitalized group,” the announcement said.
A meeting to vote on the scheme is expected to take place in the second quarter of calendar 2026, but ASM said its board of directors unanimously recommends that ASM shareholders vote in favor of the scheme.
Subject to approval by ASM shareholders and the court, implementation of the scheme is expected before June 30 this year.
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Securities Disclosure: I, Gabrielle de la Cruz, have no direct investment interest in any company mentioned in this article.
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