Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR), a leading U.S. producer of uranium and rare earth elements, has cleared a major hurdle in its planned acquisition of Australian Strategic Materials Limited (ASX: ASM). At Scheme Meetings held on Aug. 12 in Perth, Australia, ASM securityholders overwhelmingly approved the acquisition, with 98.23% of votes cast in favor of the Share Scheme and 83.62% of shareholders present and voting supporting it. The Option Scheme received even stronger backing, with 99.97% of votes cast and 87.78% of participating optionholders in favor.
The acquisition is a strategic move to build an integrated Western mine-to-magnet rare earth supply chain, reducing reliance on Chinese processing. By adding ASM’s Korean Metals Plant, the planned American Metals Plant, and the Dubbo Project in New South Wales to Energy Fuels’ existing rare earth oxide production at the White Mesa Mill in Utah, the company aims to secure a diversified supply of critical minerals. Additionally, the Donald Project in Victoria, developed with Astron Limited, will further bolster its portfolio.
Energy Fuels has also agreed to acquire Vacuumschmelze (VAC), a permanent magnet manufacturer, which would extend its capabilities into magnet production. The VAC acquisition is expected to close in early 2027, subject to regulatory approvals, and is not a condition of the ASM transaction.
The approval marks a significant step for Energy Fuels in its quest to become a key player in the Western rare earth market. The company already operates the only fully licensed conventional uranium mill in the U.S., and its expansion into rare earths and magnets could have implications for industries ranging from electronics to electric vehicles, which depend on these materials.
ASM is scheduled to seek final approval from the Federal Court of Australia on Aug. 18, with the schemes expected to become effective on Aug. 19 and implementation targeted for Aug. 28. Once completed, the acquisition will likely strengthen Energy Fuels’ position in the global critical minerals market, providing a more secure supply chain for U.S. and allied nations.
The move comes at a time when governments and industries are increasingly focused on securing supply chains for critical minerals, which are essential for national security and the transition to clean energy. Energy Fuels’ integrated approach, from mining to magnet production, could set a precedent for other companies seeking to reduce dependence on foreign sources.
For more details about the acquisition, refer to the full press release at https://ibn.fm/6PfZZ.
