Published: December 20, 2017 |

[Click image to enlarge]

Westwater Resources, Inc. (WWR) has entered into a definitive agreement to acquire Alabama Graphite Corp. (AGC) pursuant to a plan of arrangement under the Business Corporations Act (British Columbia).

Upon completion of the acquisition, the two companies will be combined to create a larger, more diversified American energy minerals development and exploration business, with the aim of becoming a low-cost producer in the United States of specialized graphite for use in batteries worldwide. The acquisition is expected to provide significant benefits for both of AGC’s and WWR’s shareholders, including operational efficiencies and improved access to capital.

As a result of this combination, Westwater increases its ability to participate in the value chain of critical materials for the high growth battery market with:

• The Coosa Graphite Project, a near term, high value planned producer of battery materials in Alabama that can
  serve fast growing markets for electrical power storage.

• Westwater’s existing lithium exploration projects in Nevada and Utah.

“This will be a transformational acquisition for our shareholders that we believe positions our combined company as a leading battery materials developer in the U.S. with potential for near term production from the Coosa Project. We will be meeting with all stakeholders and state regulatory entities shortly and plan to be full speed ahead with development of the project in Alabama following closing,” said Westwater’s Chief Executive Officer, Chris Jones.

Westwater retains its leverage to the anticipated increase in pricing and demand for uranium with its diversified portfolio of conventional and in-situ recovery uranium projects in the United States and the Republic of Turkey.  Following recently announced production cuts by two major producers, the uranium price has risen significantly since the first week of November due to the perceived improvement in supply/demand fundamentals within the sector.

Based on the financial analysis outlined in the Coosa Project’s NI 43-101 compliant preliminary economic assessment which includes an after-tax NPV for the project of $320 million, Westwater believes the Acquisition represents compelling value and is accretive to Westwater shareholders.

The Coosa Project

The Coosa project is located near Sylacauga, Alabama, approximately 50 miles southeast of Birmingham. The area has been a past producer of graphite, utilizing a geology trend spanning tens of thousands of acres, known as the “Alabama Graphite Belt.” Alabama remains a friendly business jurisdiction, exemplified by successfully securing a $1 billion commitment from Daimler Benz to build a lithium-ion battery factory near their automobile assembly plant in that state.

To read transaction details, CLICK HERE

About Westwater Resources
Westwater Resources (formerly Uranium Resources, Inc.) is focused on developing energy-related metals. The company has developed a dominant land position in three prospective lithium brine basins in Nevada and Utah in preparation for exploration and potential development of any lithium resources that may be discovered there. In addition, WWR remains focused on advancing the Temrezli in-situ recovery (ISR) uranium project in Central Turkey when uranium prices permit economic development of this project. WWR controls extensive exploration properties in Turkey under eight exploration and operating licenses covering approximately 39,000 acres (over 16,000 ha) with numerous exploration targets, including the potential satellite Sefaatli Project, which is 30 miles (48 km) southwest of the Temrezli Project. In Texas, the company has two licensed and currently idled uranium processing facilities and approximately 11,000 acres (4,400 ha) of prospective ISR uranium projects. In New Mexico, the company controls mineral rights encompassing approximately 186,000 acres (75,300 ha) in the prolific Grants Mineral Belt, which is one of the largest concentrations of sandstone-hosted uranium deposits in the world. Incorporated in 1977, WWR also owns an extensive information database of historic drill hole logs, assay certificates, maps and technical reports for uranium properties located in the Western United States.

To stop by Westwater’s website, CLICK HERE

Be in-the-know when you’re on-the-go!

FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.

Copyright © 2017 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)