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Westwater Resources Announces Royalty and Promissory Note Sale for $2.75 Million
CENTENNIAL, Colo.--(BUSINESS WIRE)--Westwater Resources, Inc. (“Westwater,” or the “Company”) (Nasdaq: WWR), an energy materials development company, today anno
About this update from Westwater Resources, Inc.
[{"type":"text","content":"CENTENNIAL, Colo.--(BUSINESS WIRE)--Westwater Resources, Inc. (“Westwater,” or the “Company”) (Nasdaq: WWR), an energy materials development company, today announced that Uranium Royalty Corp. (URC) and its US subsidiary have together agreed to purchase royalties owned by Westwater on future uranium production from mineral properties in South Dakota, Wyoming and New Mexico, as well as a promissory note in the amount of $2.0 million and the related mortgage that the Company holds on the Church Rock and Crownpoint, New Mexico properties of Laramide Resources. Uranium Royalty Corp. and its US subsidiary have agreed to purchase these interests for collective total consideration of $2.75 million, including $0.5 million paid at signing. The balance of $2.25 million will become due and payable at the earlier of June 30, 2019 or following the date upon which the closing conditions are satisfied. Christopher M. Jones, President and CEO of Westwater, stated, “We continue to opportunistically manage our assets, with the goal of maximizing value to our shareholders. In this instance, we divested our non-core holdings for immediate cash consideration. This transaction monetizes our uranium royalty portfolio and moves forward income from 2020 to 2019. Uranium Royalty’s unique model for funding uranium projects is well-timed for the industry. This is a win-win for both our companies.\" The Westwater Royalty Portfolio being sold to URC under the Asset Purchase Agreement consists of: A 4% net returns royalty on future uranium production from Laramide Resources’ Church Rock property located in New Mexico; A 30% net proceeds royalty on future uranium production from a portion of Azarga Uranium’s Dewey-Burdock property located in South Dakota; An up to 4% overriding royalty on part of Peninsula Energy’s future uranium production from its Lance Project located in Wyoming; and A 4% royalty on the gross value from uranium production from a portion of Energy Fuels’ Roca Honda property located in New Mexico. The sale also includes a promissory note secured by a mortgage held by Westwater on Laramide Resources’ Church Rock and Crownpoint, New Mexico uranium properties, with four remaining payments due through maturity on January 5, 2020. Westwater will be entitled to retain any interest payments on the promissory note made before the closing of the trans...