Base Resources rocketed almost 90% as the mineral sands miner announced a merger with US-based Energy Fuels (TSX:EFR) to create a global critical minerals business.
Shareholders in Base will receive shares and a special dividend worth in total approximately A$0.302 (15.7p) per share, a premium of 188% to the last closing price.
Two major investors in base (owning 26.5% and 24.8% of the shares on issue) have said they will vote in favour, said the statement.
Development of world-class Toliara in Madagascar will be the group's focus, it added, with future monazite production from the project to be processed at Energy Fuels' operating White Mesa mill in the US.
Base’s management will continue to oversee Toliara and the completion of operations and closure of Kwale operations in Kenya.
The transaction values Base Resources equity at A$375 million (£195 million).
Tim Carstens, Base Resources managing director, said the deal was the culmination of twelve months of discussions.
“The combined group will have the financial and technical capability to not only build Toliara into one of the best critical mineral projects in the world but also to develop an integrated value chain for the rare earth elements that are essential to the global energy transition.”