Energy Fuels falls after deal to buy Australia-listed Base Resources
22/04/2024 13:17
** Shares of Energy Fuels UUUU.A down 1.7% at $5.74
premarket
** Uranium miner to buy Australia's Base Resources
BSE.AX for A$375 mln (~$241 mln), whose Toliara project in
Madagascar will allow it to develop a rare earths supply chain
** SP Angel analyst John Meyer notes, "The Toliara project
is not yet permitted but Energy Fuels Inc are prepared to
discount the risk and press ahead with the permitting program"
** Base Resources' stock surged on 188% premium offered
** Eight Capital analysts say UUUU shares will pull back due
to the premium and the fact that stock will be used as payment
** But add, "EFR needs to do this deal to finally secure
enough monazite supply to bring its larger rare earths
processing plan to fruition"
(Reporting by Seher Dareen in Bengaluru)
((Seher.Dareen@thomsonreuters.com;))