US1 Critical Minerals (ASX: USC) Share Price Tumbles: Key Reasons Behind the Fall

Sonal Goyal

20 October 2026 03:07 PM AEDT

US1 Critical Minerals (ASX: USC) Share Price Tumbles: Key Reasons Behind the Fall

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Key highlights

US1 Critical Minerals (ASX:USC) shares fell 10.53% to $0.017 during the Trading session on 20 October 2026.
The company agreed to transfer six Tanzanian uranium licences to Bradda Head Lithium, with US$1.0 million payable in cash at completion.
The company retains 100% of the Lilombe Project licence, and completion remains subject to Tanzanian regulatory approvals.

During the trading session on 20 October 2026, shares of US1 Critical Minerals Limited (ASX:USC) fell 10.53% to $0.017. Separately, the company published an ASX announcement titled “Tanzanian Uranium Tenements”, which did not carry a date on the copy reviewed, setting out an agreement with London-listed Bradda Head Lithium (BHL) for the transfer of six uranium prospecting licences. The announcement referenced a completion deadline of 15 October 2026 for the exclusivity fee, and the share price move is not linked to it in this article.

About US1 Critical Minerals Limited

US1 Critical Minerals is an Australian-listed exploration company that describes a strategic focus on the United States, including a U.S. rare earths strategy. It also holds a uranium and critical minerals project base in Tanzania, including the Mkuju Project, which incorporates the Likuyu North deposit, the Likuyu South target and the Mtonya-SWC corridor, as well as the Eland and Foxy projects.

Licence transfer to Bradda Head Lithium

The agreement covers six licences relating to the Mkuju, Foxy and Eland projects: PL11708/2021, PL11705/2021, PL11704/2021, PL12354/2023, PL11703/2021 and PL11709/2021. BHL is listed on the London Stock Exchange AIM market. The company will retain a 100% interest in licence PL13571/2025, the Lilombe Project.

Consideration and conditions

Consideration has three parts. First, US$1,000,000 in cash is payable on the completion date. Second, US$300,000 in cash or BHL shares is payable if BHL confirms an Indicated or Measured resource of at least 25 million pounds of U3O8 under NI 43-101. Third, US$500,000 in cash or shares is payable on completion of a definitive feasibility study and a formal decision by BHL to build a uranium mine on any of the licences.

BHL will pay an exclusivity fee of US$120,000, applied to licence renewal fees and repayable if completion does not occur by 15 October 2026. If it is not repaid when due, BHL may elect to convert it into USC shares at the 30-day Volume weighted average price. BHL must undertake preliminary exploration within 12 months of completion.

The transaction is subject to customary conditions, including Tanzanian regulatory approvals, and the announcement states there is no assurance it will be completed on the terms described or at all.

Retained Lilombe licence

The announcement says the directors are evaluating a program of more detailed geological mapping at the retained Lilombe tenement to improve geological understanding.

Sector backdrop

Uranium exploration in Tanzania takes place under national licensing rules and often involves transfers and joint arrangements between explorers. Resource thresholds under NI 43-101, the Canadian standard referenced in the agreement, are used to define milestone payments.

Early-stage uranium licences generally require several years of exploration, resource definition and studies before any production decision.

Risks shareholders should weigh

Only the US$1.0 million cash payment is tied to completion; the later payments depend on BHL confirming a resource and completing a feasibility study, which may not occur. The transaction may not complete if Tanzanian approvals are delayed or withheld.

The announcement refers to a repayment trigger for the exclusivity fee if completion does not occur by 15 October 2026. The company has also given warranties and indemnities that carry potential obligations. With a share price of $0.017, moves such as the 10.53% fall on 20 October 2026 can be large in percentage terms, and further funding needs may affect existing holders.

What’s next

Items still to occur include satisfaction of conditions and Tanzanian regulatory approvals, the completion date, and BHL’s preliminary exploration within 12 months of completion. USC’s own mapping program at Lilombe is under evaluation.

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