Basin Energy’s Queensland Acquisition Faces Native Title and Exploration Risks Ahead

• Acquisition of NeoDys grants 5,958 km² tenure in Mount Isa region
• Portfolio includes drill-ready uranium and rare earth element targets
• Secured $1.25 million in oversubscribed placement at 9% premium
• Queensland Government grant of $150,000 supports exploration
• Drilling planned for Q4 2025 targeting multiple high-priority prospects

Strategic Acquisition Expands Basin Energy’s Footprint

Basin Energy Limited (ASX, BSN) has taken a significant step to bolster its position in Australia’s critical minerals sector by entering into a binding agreement to acquire NeoDys Limited. This privately held explorer controls a commanding landholding of nearly 6,000 square kilometres in the Mount Isa district of northwest Queensland, an emerging province for uranium and rare earth elements (REE).

The acquisition places Basin Energy adjacent to Paladin Energy’s Valhalla uranium deposit and Red Metal Limited’s Sybella rare earth discovery, both well-regarded projects in the region. This strategic positioning offers Basin a foothold in a highly prospective area with multiple mineralisation styles.

Diverse and Drill-Ready Exploration Targets

Early-stage exploration data underpin the portfolio’s potential, highlighting three distinct, drill-ready models, paleochannel roll-front uranium, sediment-hosted ionic clay rare earth elements, and hard rock granite-hosted rare earth mineralisation. Notably, auger drilling at the Newmans Bore prospect returned significant rare earth oxide grades, including intervals of 5 metres at 1,951 ppm total rare earth oxides (TREO) with 578 ppm neodymium plus praseodymium oxides (Nd+Pr).

Complementing these targets, airborne electromagnetic surveys have delineated extensive paleochannel networks and conductive sediment layers indicative of ionic clay-hosted REE potential. The project area also contains multiple untested radiometric anomalies analogous to the Valhalla-style shear-hosted uranium deposits, which collectively host over 116 million pounds of uranium oxide.

Fully Funded to Accelerate Exploration

Basin Energy has successfully raised $1.25 million through an oversubscribed share placement priced at $0.025 per share, representing a 9% premium to the 20-day volume-weighted average price. This capital raise, combined with a $150,000 Queensland Government Collaborative Exploration Initiative grant, fully finances the company’s planned exploration activities.

Drilling programs are scheduled to commence in the fourth quarter of 2025, employing cost-effective aircore and reverse circulation techniques to test multiple high-priority targets. The company is also progressing detailed targeting and drill planning to maximise the efficiency and impact of these campaigns.

Consideration and Governance

The acquisition consideration includes the issue of shares, options exercisable at 5 and 10 cents, and performance rights tied to exploration milestones such as significant drill intersections and resource delineation. Additionally, a 1.25% net smelter returns royalty is part of the deal structure. Completion is subject to shareholder approval expected in early October 2025.

Basin Energy’s Managing Director, Pete Moorhouse, emphasised the transformative nature of the acquisition, noting the portfolio’s exceptional geology and strategic scale. He highlighted the company’s readiness to unlock value through rapid, low-cost drilling and welcomed the strong investor support reflected in the oversubscribed placement.

Environmental and Community Engagement

The Sybella-Barkly project area is subject to native title agreements with local Indigenous groups and covered by environmental authority permits. Basin Energy has established exploration access agreements and is mindful of environmental and cultural heritage considerations as it advances its exploration programs.

While the exploration targets are early-stage and require further drilling to confirm mineralisation continuity and economic viability, Basin Energy’s expanded footprint and secured funding position it well to contribute to Australia’s critical minerals supply chain amid the global energy transition.

Bottom Line?

Basin Energy’s acquisition and funding set the stage for a pivotal exploration phase in Queensland’s uranium and rare earth sector.

Questions in the middle?

• Will upcoming drilling confirm the scale and grade of uranium and rare earth mineralisation?
• How will Basin Energy navigate native title and environmental approvals to maintain exploration momentum?
• What impact will successful exploration have on Basin Energy’s market valuation and shareholder returns?