Energy Fuels delays Australian Strategic Materials deal

• Energy Fuels has further delayed its all-scrip acquisition of Australian Strategic Materials due to a separate transaction.
• The delay allows the company to incorporate a US$1.9 billion acquisition of German magnet manufacturer Vacuumschmelze into its regulatory disclosures.
• The combined assets are intended to establish a fully integrated, Western mine-to-magnet rare earth element supply chain platform.

Energy Fuels (NASDAQ:UUUU) has delayed its all-scrip acquisition of Australian Strategic Materials (ASX:ASM) after launching a separate US$1.9 billion takeover bid.

The suitor initially agreed in January to acquire all outstanding shares of ASM at an implied equity value of approximately $447 million.

The ASM shareholder vote scheduled for 22 June was postponed to provide securityholders with supplementary disclosures about a conditional US$725 million federal loan commitment.

The company stated that the final timeline must now also incorporate updates from the new German magnet manufacturer acquisition.

Despite these disclosure delays, the ASM board continues to unanimously recommend that shareholders vote in favour of the deal.

Following the announcement, the Australian Strategic Materials share price was down 0.60% at $1.32.

An updated independent expert report from BDO maintained that the transaction remains fair value despite recent share price volatility.