Business
Idaho Strategic Resources' CEO Provides Business Combination Proposal to Westwater Resources' Stakeholders
COEUR D'ALENE, ID / ACCESSWIRE / December 22, 2022 / Idaho Strategic Resources (NYSE American:IDR) ("IDR" or the "Company") is announcing that on 12/15/22 it su
About this update from Idaho Strategic Resources, Inc.
[{"type":"text","content":" COEUR D'ALENE, ID / ACCESSWIRE / December 22, 2022 / Idaho Strategic Resources (NYSE American:IDR) (\"IDR\" or the \"Company\") is announcing that on 12/15/22 it submitted a non-binding proposal to WWR management to acquire all of the outstanding shares of common stock of Westwater Resources (WWR) (\"WWR\" or \"Westwater\"). The non-binding proposal was accompanied by a short presentation outlining potential terms and the anticipated benefits of such a business combination. The proposal was declined via email by Westwater's Executive Chairman, on 12/19/22 as ‘not being in the best interests of the Company at this time and they will not pursue the proposal further'. As our track record demonstrates we very rarely look to the markets for M&A or larger financings, however as the largest Idaho Strategic shareholder I feel this opportunity is unique to our positioning and well worth considering. The following letter will provide a brief overview of Idaho Strategic, a look at the combined assets of the two companies, and ultimately outline what IDR believes to be a 1+1=3 scenario to build shareholder value. At IDR we recognize the potential concern for the sincerity around an unsolicited proposal when a management team finds itself trapped in a similar situation…where the market drastically discounts your business plan with a market valuation at less than half of the cash on hand. Furthermore, while we do not share a similar philosophy, we can empathize with how this reality can influence personal decision making when faced with the loss of well-salaried positions, relatively short employment tenure and correspondingly small personal share positions in the company. It is with this in mind that we are respectfully asking WWR management to allow its shareholders to have input on our business proposal (or other negotiated structure) - fully knowing on our side that publicly discussing this endeavor may or may not bring in other potential suitors, welcome or otherwise. Idaho Strategic proposed to WWR an offer of its common stock to acquire all of the issued and outstanding shares of Westwater Resources, Inc. at a ratio of 0.2353 IDR shares for 1 WWR share. The effective value placed on Westwater shares of $1.36 represents an attractive premium of approximately 73% when compared to the price of Westwater's stock at the close of busine...