Business
Westwater Resources Announces Sale of North American Uranium Business
CENTENNIAL, Colo. / Jan 05, 2021 / Business Wire / Westwater Resources, Inc. (Nasdaq: WWR), a battery graphite development company, today announced the sale of
About this update from Westwater Resources, Inc.
[{"type":"text","content":"CENTENNIAL, Colo. / Jan 05, 2021 / Business Wire / Westwater Resources, Inc. (Nasdaq: WWR), a battery graphite development company, today announced the sale of all of its uranium assets located in New Mexico and Texas to enCore Energy Corp. of Vancouver, British Columbia, Canada, a Toronto Venture Exchange-listed company (TSXV:EU). Total consideration accruing to Westwater from the deal is $1.8 million in enCore shares (2,571,598 shares), representing a 1.5% ownership of enCore, and two royalties from future production from the New Mexico uranium properties. enCore also assumed the asset retirement obligation on all remaining uranium reclamation activities associated with the assets in the amount of approximately $6.0 million. All performance bonds for the Texas uranium properties have been transferred to enCore as of December 31, 2020, as well as the release of $742,642 in restricted cash collateral to Westwater as a result of the transfer of the performance bonds. Westwater is retaining its uranium interests in the Republic of Turkey, which are subject to an ongoing international arbitration proceeding. Christopher M. Jones, President and Chief Executive Officer of Westwater said, “We are happy to place these uranium assets in the hands of a company like enCore where they can be developed further as part of a larger, consolidated land position. With over $50 million in our treasury, Westwater can now devote its full focus, attention and resources on advancing our battery-grade graphite product business. At the same time, we expect to free-up over $4 million per year for the next several years in land payments, reclamation expenses and operating costs associated with the uranium properties – money that can be used for our Coosa Graphite Project.” “The Coosa Graphite Project in Alabama is perfectly timed to take advantage of the advances in the electrification of our transportation system and in the grid electricity storage for renewable energy, both here in the United States and the rest of the world. These systems need graphite as a critical component – and our development plan puts battery-grade graphite in the marketplace in FY2021 and accelerates Westwater’s path to cash flow in FY2023. Completing the transformation of the Company from its uranium past to its graphite future is good for business and provides value for our s...