Westwater Resources, Inc. · AMEX:WWR
Westwater Resources — Uranium Resources — Merger or Acquisition (July 2015)
36 slides from Westwater Resources's merger presentation, Jul 16, 2015
Slide 1: Merger of Uranium Resources, Inc. & Anatolia Energy Limited
MERGER OF URANIUM RESOURCES, INC. (NASDAQ:URRE) & ANATOLIA ENERGY LIMITED (ASX:AEK) AUSTRALIAN URANIUM CONFERENCE, PERTH – JULY 15/16, 2015 A newuraniumcompanywithaimtofast-tracktohigh-marginuraniumproduction Paul Cronin Chief Executive Officer and Managing Director Anatolia Energy Limited Christoph
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “bel
Slide 3: Competent person statements
For Anatolia Information in this presentation which relates to Anatolia’s Mineral Resources and Exploration Results is based on information compiled by Mr Dmitry Pertel and Mr Robert Annett, who are Members of the Australian Institute of Geosciences (“AIG”). Mr Pertel is employed by CSA Global Pty L
Slide 4: Cautionary Note Regarding References to Resources and Reserves
The Company discloses mineral resources, including inferred resources, pursuant to the Canadian Institute of Mining, Metallurgy and Petroleum Standards (CIM Standards) for reporting mineral resources and reserves, and Canadian National Instrument 43-101 (NI 43-101). Investors are cautioned that the
Slide 5: 5 Simple Compelling Rationale
AEK High grade advanced ISR project in Turkey Near term low cost production Finance & marketing expertise Exploration upside Lowest quartile operating costs Favourable regulatory jurisdiction Established infrastructure URI Experienced technical personnel Relocatable plant infrastructure Large uraniu
Slide 6: URI is attractively valued relative to its peers
Producer (ISR, Conventional) Energy Fuels $4.14 $186 $214 134.7 $1.59 U.S. ISR Producer, Conventional Projects Uranium Energy $1.28 $125 $134 75.7 $1.76 U.S., Paraguay Ur-Energy $0.75 $98 $133 36.2 $3.66 Producer (ISR) U.S. Peninsula Energy $0.02 $129 $93 95.8 $0.97 Under Construction (ISR) U.S., So
Slide 7: URI Primer
Founded in 1977 targeting uranium exploration and development Listed on NASDAQ in the US (URRE) Historically produced 8 million pounds of uranium in Texas, with 2 plants on standby restart Large claims portfolio in prime uranium districts in Texas and New Mexico (212,000 acres) Significant explorati
Slide 8: URI experienced technical personnel
Designed and oversaw construction of Plant 7 years with experienced in Professional certified safety experienced in asst. plant construction B.S. Chemical Health, Safety formerly a lab lead man B.S. Mechanical Coordinator Current Engineer URI. Prof. Engineer B.S. Chemical Engineering; M.S. Environme
Slide 9: URI has over 120M lbs of in-place U3O8
URI has over 120M lbs of in-place U3O8 Footnotes to the Reserves table: 1. The Company estimates a 65% recovery rate for ISR methods and used a price assumption of $53.58 per uranium pound, which is the trailing three-year, average long-term price of uranium using Ux Consulting’s “Term” pricing data
Slide 10: Plans to transfer URI's Rosita plant to Temrezli
Plans to transfer URI’s Rosita plant in Texas to Temrezli In 2008, major expansion at Rosita was 95% completed when construction halted due to market conditions. (See slides 25 and 32.) New dryer, elution and precipitation components, including columns and pumps went unused. Mobile ion exchange sate
Slide 11: URI: Mid Term ISR Potential of Texas
Acquired ISR projects in South Texas, enhancing mid-term path to production in November 2014 All projects located near URI’s processing plants on standby for restart Prospective roll-front mineralization in sandstones amenable to in-situ recovery Completed Phase One exploration drilling1 at Butler R
Slide 12: URI: Mid & Long Term Potential of New Mexico
Dominant land and resource position in the Grants uranium mineral belt, which holds one of the largest known concentrations of sandstone-hosted uranium deposits in the world Churchrock: Large ISR project requiring higher uranium prices Juan Tafoya: Conventional recovery with NI 43-101 resources of 1
Slide 13: Who is Anatolia?
Temrezli Uranium Project,Turkey Solid Management Team Paul Cronin – Investment banking, uranium trading background Hikmet Akin – Fmr CEO Uranerz, ISR founder Tom Young – Fmr VP Operations for Cameco Cevat Er – GM Turkey, founded SRK in Turkey 100% owned PFS forecast 800,000 lbs/yr for 12 years Upfro
Slide 14: Anatolia's Temrezli Project
High Grade, Low Cost ISR Project Nearing development decision Pre-Feasibility completed February 2015 PFS Development Case: (M lbs) Average annual production of 800,000 pounds of uranium over 12 years Average cash operating costs of $16.89/ lb U3O8 JORC & Canadian NI 43-101 M&I resources of 4.2 mill
Slide 15: Temrezli Project PFS: Robust Financial Returns
Robust Financial Returns1 $500 90% Free Cash Flow NPV IRR $450 80% Life of mine 12 years $400 70% Annual Production (avg.) 0.8 Mlb U308 $350 60% $300 Upfront Capital Cost $41.0M 50% $250 Cash Operating Cost $16.89/lb 40% $200 $191.1M Pre-Tax NPV (8%) 30% $15 $345.5M 20% Free Cash Flow $10 10% $50 65
Slide 16: Temrezli - Lowest Quartile of Industry Costs
100 Cumulative Production Capacity 90 80 70 60 Q UG ISR 50 0 30 20 10 0 25 50 75 100 125 150 175 200 225 250 275 300 325 350 MM lbs U308 Source: Operating Mines’ Design Capacity – UxC 2013 and Dundee’s current data 17 US$/lb - All in Costs Temrezli PFS: $30.12 Current spot price suggests 125-175 M l
Slide 17: Why Turkey
Energy Independence a High Priority 6 largest economy & largest Turkish Government supports the Temrezli Project Temrezli is Turkey’s only advanced uranium asset Temrezli’s Operation License granted in October 2013 Long mining history (nickel, gold, boron, chromium, coal, copper, etc.) Transparent m
Slide 18: Temrezli PFS Roadmap to Production
Uranium Production 19 2015 2016 PFS Completed – Feb 2015 Detailed Engineering & Well Field Design Plant Optimisation Assessment Environmental and Social Impact Assessment Permitting Project Finance & Hedging Plant Construction & Well Field Development Plant Commissioning & Uranium Production TEMREZL
Slide 19: Regional Exploration Setting
Sefaatli located 40km southwest of Temrezli West Sorgun identified as a new area of mineralization MTA have identified several new areas of uranium mineralisation Exploration drilling now underway 20 REGIONAL EXPLORATION SETTING EXPLORING IN A PREMIER URANIUM DISTRICT
Slide 20: Transaction Summary
URI AEK + 0.06579 URI shares for each Anatolia share held Shares to be traded on NASDAQ & ASX Anatolia shareholders will own 41% of combined group Strong premium offered to Anatolia Shareholders 2 Anatolia Directors to join URI Board Scheme of Arrangement, expected closing date 30 September 21 TRANS
Slide 21: Board and major shareholder support for the merger
The merger is strongly supported by the Boards of each of Anatolia and URI, and major shareholders of both companies Anatolia Energy Uranium Resources complete the acquisition of Anatolia Resource Capital Fund ^ Subject to there being no superior proposal, and subject to the Independent Expert opini
Slide 22: New URI: Outstanding Leadership
B.S. in Mining Engineering from South Dakota School of Mines and an MBA from Colorado State University B.S. in Accounting from the University of Wyoming; licensed CPA Mines, and an MBA from the University of Denver B.S. in Mechanical Engineering from Colorado School of Mines M.Sc. from Arizona State
Slide 23: Board of Directors
Chairman of the Board of Ocean Power Technologies, Inc., and he is a Board Leadership Fellow of the Limited, and VP of Nuclear Origination at Constellation Energy. Doe Run Co. acquisitions, and a detailed understanding of ASX, ASIC and Corporations law in Australia. businesses. Former Global Head of
Slide 24: Benefits of the Merger
1 + 1 = >2 management again Cost of s to suit market conditions 25 ple projects that can be developed in Geographical diversification reduces risk Utility customers o Optimisation opportunities exist due to increased M&A activity in sector o Expanded asset base offers new financing opportunities o R
Slide 25: Merged Entity Project Pipeline
1. Uranium Resources expects to dismantle and ship the Rosita processing plant equipment, which is currently on standby, to the Temrezli Project for synergistic savings. 26 MERGED ENTITY PROJECT PIPELINE
Slide 26: Potential Benefits to be Enjoyed by All Shareholders
27 Potential Benefits to be Enjoyed by All Shareholders ./ Strong potential synergies between Anatolia’s Temrezli Project and URI’s idle Rosita processing facility, and the value-add that URI’s experienced technical personnel can provide will deliver real value to all shareholders ./ Deeper portfoli
Slide 27: Potential benefits to Anatolia and URI shareholders
world’s best undeveloped high-grade ISR uranium projects project to generate strong returns for shareholders contains Anatolia’s highly prospective Sefaatli Project with the 28 Potential Benefits delivered to Anatolia Shareholders Potential Benefits delivered to URI Shareholders ./ Very significant
Slide 28: Investment Proposition
Near-term, low-cost production from high-grade Temrezli ISR project; Potential for material synergies through use of URI infrastructure and personnel; Demonstrated monetization of assets -7 lower levels of dilutionary Medium term production potential at US and Turkish projects; funding; Significant
Slide 29: Appendices
30 Appendices
Slide 30: Development Synergies
URI’s Rosita facility is designed to scale up the production from 800,000lbs per annum to 1.6Mlbs U308 per annum with some capital upgrades Capital equipment at URI’s Rosita that is currently idle can be shipped to Turkey for the Temrezli development for US$8 million in savings URI team’s experience
Slide 31: Temrezli PFS Capital Costs
First uranium production to be achieved through initial capital of only US$41M Cost to be re-evaluated post merger as part of updated feasibility to consider the integration of the Temrezli deposit with URI’s Rosita processing plant Excellent existing local infrastructure at project site, including
Slide 32: Temrezli PFS Operating Costs
Achievement of the forecast operating costs would make Anatolia one of the lowest cost uranium producers globally Low cost structure underpins strong cashflow, even during times of depressed uranium prices Favorable project characteristics driving Temrezli low cost Shallow resource High grade uraniu
Slide 33: Post-Deal Capitalisation
(in US$) Post Transaction URI URI Share Price (July 7, 2015) (1) Current URI Shares O/S Shares to be issued to Anatolia shareholders $0.97 29,777,989 20,377,872 URI Shares O/S post-transaction Basic Market Cap Cash and Liquid Investments(2) Debt(2) Total Enterprise Value 50,155,861 $48,651,185 $10,4
Slide 34: Attractive Offer Price
The offer from Uranium Resources provides Anatolia shareholders with a strong premium to Anatolia’s trading price $0.12 Premium $0.10 $0.08 $0.06 $0.04 $0.02 $0.00 Last Close 5 day VWAP 30 day VWAP 60 day VWAP 90 day VWAP AEK Periodic VWAP Implied Offer Price Source: IRESS VWAP’s of each of Uranium
Slide 35: Contacts
For more information, Christopher Jones President and CEO Uranium Resources, Inc. Tel: 303-531-0470 contact: Paul Cronin Managing Director Anatolia Energy Limited Phone: +44 7912 351 031 (UK) Phone: +61 428 638 201 (Australia) Email: paul.cronin@anatoliaenergy.com.au Media Wendy Yang Uranium Resourc
Slide 36: Transaction Summary
1. Based on the 30 day volume weighted average prices of Uranium Resources and Anatolia Energy as of close of trading on NASDAQ on June 2, 2015 and close of trading on ASX on June 3, 2015 respectively, and an exchange rate of US$0.777 = A$1.00 37 TRANSACTION SUMMARY Structure • Acquisition of Anatol
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