Energy Fuels Inc. (EFI), a Canadian mining company, is set to acquire full ownership of Base Titanium Limited in Kwale County through its Australian subsidiary, EFR Australia PTY Limited, following approval from the Competition Authority of Kenya (CAK).

The deal will see EFR Australia take the reins at the mineral mine just months before Base Resources Limited, the current Australian owner, ceases operations later this year.

"The proposed transaction involves the acquisition of 100 per cent of the issued and outstanding shares in the capital of Base Resources Limited by way of a scheme of arrangement in exchange for shares in the capital of Energy Fuels Inc.," the authority stated.

Subsequently, the Victoria-based firm will recommence mining activities, diversifying its mining portfolio.

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"The rationale for the transaction is diversification of EFR PTY’s mining business," CAK said.

The authority determined that the acquisition constitutes a merger under Kenya's Competition Act, which stipulates that mergers must be approved if they involve acquiring control over a Kenyan business.

However, the CAK has cleared the deal, asserting that it will not impact competition in the titanium minerals market.

"Post-merger, the merged entity’s market share will not change since the target and the acquiring group do not operate in Kenya," the authority explained.

Base Titanium, a subsidiary of Base Resources Limited, specializes in the extraction and export of ilmenite, rutile, and zircon.

Shareholders of Base Resources will receive 0.026 Energy Fuels common shares as part of the transaction.

The takeover marks a significant shift in the ownership of Kenya's only titanium mine and will be closely watched by industry stakeholders.