Business
Westwater Resources acquires Alabama Graphite – Fast Tracking Battery Materials Development in the United States for Sales Worldwide
CENTENNIAL, Colo., Dec. 13, 2017 (GLOBE NEWSWIRE) -- Westwater Resources, Inc. (Nasdaq:WWR) (“WWR” or “Westwater”), is pleased to announce that it has entered i
About this update from Westwater Resources, Inc.
[{"type":"text","content":"CENTENNIAL, Colo., Dec. 13, 2017 (GLOBE NEWSWIRE) -- Westwater Resources, Inc. (Nasdaq:WWR) (“WWR” or “Westwater”), is pleased to announce that it has entered into a definitive agreement to acquire Alabama Graphite Corp. (“AGC” or “Alabama Graphite”) (TSX-V:CSPG) (OTCQB:CSPGF) pursuant to a plan of arrangement under the Business Corporations Act (British Columbia) (the “Acquisition”). 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 (“Coosa 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. 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 (summarized below) 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. For further information about the Coosa Project and about Alabama Graphite see AGC website at: www.alabamagraphite.com. Transaction Details On December 13, 2017, Westwater and a wholly owned subsidiary of Westwater entered into an Arrangement Agreement (the “Arrangement Agreement”) with Alabama Graphite, a corporation exis...