The Base Resources Ltd (ASX: BSE) share price is catching the eye on Monday.

In morning trade, the ASX mining stock is up a massive 109% to 22 cents.

This is quite a turnaround for the mineral sands producer, which was trading half a cent above a multi-year low on Friday.

Investors have been fighting to get hold of the company's shares this morning after it entered into a binding scheme implementation deed (SID) with Energy Fuels Inc. (TSE: EFR).

According to the release, the SID will see Energy Fuels acquire 100% of the issued shares in Base Resources by way of a scheme of arrangement for 0.026 Energy Fuels common shares plus A$0.065 in cash via an unfranked special dividend.

This equates to an offer price of 30.2 Australian cents per share and a total equity value of A$375 million. It also represents a premium of 188% to where the ASX mining stock finished last week.

The Base Resources board unanimously recommends that shareholders vote in favour of the transaction. This is in the absence of a superior proposal and subject to the independent expert's report.

Subject to these same qualifications, the company's directors intend to vote shares held by or on behalf of them in favour of the scheme. It is also the same for each of its two largest shareholders, Pacific Road Capital (owning a 26.5% stake) and Sustainable Capital (owning a 24.8% stake).

The ASX mining stock's managing director, Tim Carstens, believes that shareholders are getting a great deal. He also revealed that talks have been ongoing for some time. Carstens said:

This Transaction, which is the culmination of 12 months of discussions between Base Resources and Energy Fuels, reflects the exceptional quality of the Toliara Project and the efforts of the Base Resources team over the past several years to advance the project towards construction readiness. The combined group will have the financial and technical capability to not only build Toliara into one of the best critical mineral projects in the world, but also to develop an integrated value chain for the rare earth elements that are essential to the global energy transition.

Shareholders of Base Resources will receive both a compelling and immediate premium, and the opportunity to further participate in the market recognition and development of a company with a unique diversified position in the critical minerals landscape.