LONDON: Atlas Metals has signed a non-binding letter of intent to acquire Universal Pozzolanic Silica Alumina Ltd (UPSA), a privately held U.K.-based company with significant mineral reserves in Australia, the company announced Tuesday.
The proposed share-for-share deal would give Atlas access to UPSA’s pozzolanic silica alumina (PSA) reserves, valued at £10 per ton. UPSA holds extraction rights for 250 million tons of PSA, with potential access to an additional 1.35 billion tons. The material is used as a sustainable alternative in cement production, reducing carbon emissions by approximately 40%.
UPSA’s audited net assets were £1.078 billion as of Oct. 31, 2024, reflecting the discounted value of its initial reserves. The company is already in talks with global cement producers for offtake agreements, including a non-binding initial supply deal for up to 270,000 tons of PSA.
If completed, the acquisition would constitute a reverse takeover under U.K. listing rules, resulting in Atlas shareholders holding a minority stake in the enlarged group. The deal remains subject to due diligence, regulatory approvals and shareholder consent.
In a separate move, Atlas agreed to sell its Gold Ridge asset in Arizona for $550,000 as part of a strategy to divest non-core assets. The company said it continues to explore additional acquisitions to expand its natural resources portfolio.