Australia's Base Resources shares soar as it backs $241 mln buyout offer (updated)
22/04/2024 01:26
(Adds details of deal in 2-6)
April 22 (Reuters) -
Shares of Australian mineral sands miner Base Resources
BSE.AX shot up 100% on Monday after it backed a A$375 million
($240.90 million) takeover offer from U.S.-based uranium and
rare earths producer Energy Fuels UUUU.A .
Shares of Base, a rare-earths hopeful that owns mineral
sands operations in Madagascar, skyrocketed to A$0.21 in early
trading.
Base shareholders would get A$0.302 per share of the company
under the deal, the Australian firm said in a statement. It will
consist of 0.0260 shares of Energy Fuels along with an unfranked
special dividend of A$0.065 for each Base share.
The transaction price represents a premium of 188% to
Base Resources’ last closing price of A$0.105 per share on April
19.
The deal would provide the new company funding to expand
production of monazite, at its Toliara Project in Madagascar.
($1 = 1.5567 Australian dollars)
(Reporting by Poonam Behura; Editing by Kim Coghill, Jamie
Freed and Gerry Doyle)
((Poonam.Behura@thomsonreuters.com;))