Can Basin Energy Deliver on High-Stakes Uranium and Rare Earth Targets After Acquisition?

Strategic Acquisition Expands Basin’s Queensland Portfolio

Basin Energy Limited (ASX, BSN) has taken a significant step forward in its green energy metals ambitions by acquiring NeoDys Limited, a private explorer with a commanding landholding in the Mount Isa region of northwest Queensland. This acquisition grants Basin access to one of Australia's largest and underexplored provinces for uranium and rare earth elements (REE), positioning the company to leverage recent discoveries such as Red Metal Limited’s Sybella rare earth deposit.

The deal, completed in the subsequent quarter after announcement, includes the issuance of shares, options, and performance rights, alongside a 1.25% net smelter returns royalty, aligning incentives for future exploration success.

Three Drill-Ready Targets with Government Support

Basin has identified three compelling, district-scale drill targets within the acquired package, a sediment-hosted ionic clay rare earth system, a paleochannel uranium system defined by airborne electromagnetic surveys, and a hard-rock granite-hosted REE system analogous to the Sybella discovery. Soil sampling has revealed significant rare earth anomalies, including total rare earth oxides (TREO) exceeding 600 ppm, while auger drilling has returned high-grade results such as 5 meters at 1,951 ppm TREO.

Importantly, the Queensland Government has committed $150,000 in funding to fast-track drilling activities, underscoring the strategic importance of these critical minerals in the context of the Australia-US critical minerals agreement and tightening global markets.

Capital Raise to Fund Maiden Drilling

To capitalize on these opportunities, Basin has initiated a two-tranche capital raise targeting $1.25 million, with tranche one completed during the quarter. The funds will support the maiden drilling campaign scheduled for Q4 2025, focusing on testing the three priority targets with cost-effective air core and reverse circulation drilling methods.

The capital raise was well received, with shares issued at a 9% premium to the 20-day volume weighted average price prior to the announcement, reflecting investor confidence in Basin’s expanded exploration strategy.

Progress Beyond Queensland, Scandinavia and Canada

Beyond Australia, Basin continues to advance its uranium exploration portfolio in Scandinavia and Canada. In Sweden, the company is poised to benefit from the anticipated lifting of the uranium mining ban in early 2026, with reconnaissance sampling revealing high-grade polymetallic mineralization and uranium anomalies across several projects.

In Canada’s Athabasca Basin region, Basin’s Geikie, Marshall, and North Millennium projects remain active exploration fronts. Recent drilling at Geikie has identified extensive alteration zones typical of high-grade basement-hosted uranium deposits, while geophysical surveys at Marshall have delineated promising unconformity-style uranium targets.

Outlook and Market Positioning

Basin Energy’s expanded footprint and diversified project pipeline position it well within the critical minerals sector, a space gaining increasing attention amid global energy transition efforts. The company’s strategic acquisition, supported by government funding and a targeted capital raise, sets the stage for a potentially transformative drilling campaign in Queensland, while ongoing work in Scandinavia and Canada adds further optionality.

Investors will be watching closely for upcoming drilling results and resource updates, which will be pivotal in validating the promising early-stage exploration data and advancing Basin’s growth trajectory.