Basin Energy Ltd (ASX:BSN, OTC:BSNEF) has struck a binding agreement to acquire one of Queensland’s largest uranium and rare earths exploration packages, adjacent to Paladin Energy’s Valhalla uranium deposit and Red Metal’s Sybella rare earth discovery. The news sent shares up nearly 200% in early trading.
The acquisition delivers Basin three distinct, drill-ready exploration models supported by government funding and an oversubscribed A$1.25 million placement. With exploration planning already underway, the company will commence drilling in the December 2025 quarter.
Project location map.
“This acquisition propels Basin into Australia’s uranium and rare earth exploration landscape. These projects deliver exceptional geology, strategic scale and compelling upside across two of the most critical mineral sectors of the energy transition,” Basin managing director Pete Moorhouse said:
Acquisition of NeoDys and project scale
Basin has agreed to acquire NeoDys Limited, a private explorer holding 5,958 square kilometres in the Mount Isa district. This ground positions Basin at the centre of an emerging uranium and rare earths province. The company now controls targets spanning paleochannel uranium, sediment-hosted ionic clay rare earths, and hard rock granite-hosted rare earths.
The Sybella Batholith, host to Red Metal’s recent discovery, underpins the exploration models. It also represents a potential source of uranium mineralisation feeding Paladin’s nearby Valhalla deposit. Basin will leverage this setting to prioritise low-cost, shallow drilling campaigns.
Exploration models and early results
Three district-scale targets have been identified:
- Paleochannel roll-front uranium, mapped by historic airborne electromagnetic surveys.
- Sediment and ionic clay-hosted rare earths, supported by soil sampling with results up to 653 parts per million (ppm) total rare earth oxides.
- Granite-hosted rare earths, where auger drilling returned standout results such as 5 metres at 1,951 ppm total rare earth oxides with 578 ppm neodymium and praseodymium.
Additional Valhalla-style shear-hosted uranium targets have also been outlined, located near deposits hosting a combined 116 million pounds U3O8.
Funding position and placement terms
To fund exploration, Basin secured A$1.25 million through a two-tranche placement at A$0.025 per share, representing a 9% premium to the 20-day volume weighted average price. The issue was heavily oversubscribed and will support aircore and reverse circulation drilling, mapping, and target generation.
The company also benefits from A$150,000 in Queensland Government funding through the Collaborative Exploration Initiative. Together, these funds position Basin to commence drilling multiple shallow, high-priority targets before year end.
Strategic outlook
Drilling programs are scheduled for the December 2025 quarter, with targeting and planning already underway. Exploration will begin with aircore drilling across the Barkly Tablelands uranium and rare earth prospects, followed by reverse circulation drilling at the Newmans Bore granite-hosted rare earth target.
Completion of the NeoDys acquisition is subject to shareholder approval expected in October 2025. Performance rights tied to resource delineation and market capitalisation milestones are also included in the acquisition terms