Westwater Resources, Inc. (WWR), an energy materials development company, today announced the commencement of its graphite pilot plant program. Westwater’s Coosa Project in Alabama is expected to be the first U.S. domestic producer and processor of battery graphite materials.
With the assistance of our technology partners, including Dorfner Anzaplan, a pilot plant will be designed and constructed in September-October of 2020 and is on track to operate later this year with the intention of making material available to our potential customers in quantities and of a quality suitable for testing and qualification. Successful completion of the pilot plant program, and customer qualification of graphite products from the plant, will position Westwater to begin a feasibility study that designs a commercial-scale plant, anticipated to be complete mid-year 2021. The commercial plant is expected to be commissioned in late 2022, producing this critical component for today’s high-performance battery applications. We have made graphite samples available to a number of potential customers for testing, and these tests have been successful. We believe our graphite materials can garner a significant global market share as we move forward.”
Westwater is developing proprietary processes for the production of battery grade graphite from non-Chinese sources that are designed to manufacture high performing products while ensuring a sustainable environmental footprint and low production costs. Test work on the products from these processes has been performed already in laboratories in Germany and the United States, and those results show that the performance of the Coosa Project’s graphite is on par with or exceeds that of currently available battery products. The next step in Westwater’s development process is the operation of a pilot plant that is designed to process approximately 30-tonnes of graphite concentrate and to produce more than ten metric tons of ULTRA-PMGTM, ULTRA-SPGTM and ULTRA-DEXDGTM products, now scheduled for later this year and the first part of 2021.
Westwater Resources is focused on developing energy-related materials. The Company’s battery-materials projects include the Coosa Graphite Project — the most advanced natural flake graphite project in the contiguous United States — and the associated Coosa Graphite Mine located across 41,900 acres (~17,000 hectares) in east-central Alabama. Processing pilot plant operations are scheduled in the fourth quarter of 2020, producing ULTRA-PMGTM, ULTRA-DEXDGTM and ULTRA-CSPGTM in quantities that facilitate qualification testing at potential customers. For more information, visit www.westwaterresources.net.
$WWR For new investors / traders interested in Westwater Resources Q2 earnings (August 6th, 2020): Q2 EPS $(0.43) is up from $(1.81) YoY businesswire.com/news/home/… (Many you were brought here by this morning’s price spike from the Graphite Pilot Program announcement and couldn’t care less about the earnings but they’re there if you want to see them.) Also their website: westwaterresources.net “Energy Materials for the 21st Century Westwater Resources’ commodity portfolio includes graphite, vanadium and lithium while retaining our strong position in uranium as leverage to the future rising price – adding value in the Green Energy Materials Sector.”
Panasonic is investing 1/10th a Billion on Tesla Bateries
Tesla Factory is right next to WWR
Tesla batteries use almost 200 pounds of graphite.
Compensation as part of the deal expected to be ~$1.95M in enCore shares and royalties from future production from the New Mexico properties.
Westwater to save over $4M per year in land payments, reclamation expenses and operating costs associated with the uranium properties.
The transaction expected to close on or before December 31, 2020.
enCore Energy Signs Binding Agreement to Acquire Westwater Resources’ Uranium Production & Resource Assets
VANCOUVER, British Columbia, Sept. 09, 2020 (GLOBE NEWSWIRE) — enCore Energy Corp. (TSXV:EU; OTCQB:ENCUF) (the “Company”) is pleased to announce that effective September 1, 2020 it has entered into a binding letter of intent (“Agreement”) with Westwater Resources Inc. (Nasdaq: WWR) (“Westwater”) to acquire all of Westwater’s United States uranium assets. These assets include two two licensed Texas-based uranium production facilities, mineral exploration leases in Texas, and more than 270 square miles (180,000 acres) of patented mineral rights in New Mexico with four projects containing significant historical mineral estimates. This acquisition will more than double the Company’s current mineral rights and holdings with historical mineral estimates, and add two already licensed uranium production facilities.
William M. Sheriff, Executive Chairman of enCore Energy stated, “This transformational acquisition will on completion be the first significant step building enCore into a domestic uranium producer. Our experienced and accomplished management team believes that a major change is coming in the uranium market in the next 12 to 24 months. In addition to the key acquisition of licensed production facilities in Texas, enCore will hold the leading land position in New Mexico, consolidating the large Santa Fe and Frisco railroad “checkerboard” mineral rights land grant running through most of the Grants mineral belt.
“As market conditions continue to improve, we look forward to updating the Rosita, Texas processing facilities and restarting uranium production in one of the most favorable uranium districts in the United States. It is not a coincidence that modern commercial in-situ recovery (ISR) operations originated in South Texas,” added enCore Energy’s Chief Executive Officer, Dennis Stover. “While active exploration in the district has long been curtailed by market conditions, south Texas remains underexplored and one of the most prospective in the country for further uranium discoveries. This coupled with geologic characteristics well suited to ISR creates exceptional opportunities for enCore Energy Corp.”
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, while we devote our full focus and attention on advancing our battery-grade graphite product business and our Coosa Graphite Project in Alabama. We are excited to continue our participation in the uranium sector as a significant shareholder of enCore and royalty holder, while transferring responsibility for remaining reclamation to them. We believe that the enCore organization has a strong foundation of highly experienced former operators of uranium mines and processing facilities, and we are putting this business in good hands.”
Terms of the Transaction
Pursuant to the Agreement, the Company would acquire seven Westwater subsidiaries, holding all of Westwater’s United States uranium assets, in exchange for (i) the issuance of US$1,450,000 of enCore shares at a price per share to be determined on the closing date of the transaction, (ii) the grant of a 2% net smelter return royalty on mineral rights held by the subsidiaries in the State of New Mexico, excluding the Juan Tafoya and Cebolleta projects; and (iii) the grant of a 2.5% net profits interest on the Juan Tafoya and Cebolleta projects.
In addition, the Company and Westwater will work to reduce and replace existing reclamation bonds on Westwater’s uranium projects totaling approximately US$9.25 million. Upon replacement of the reclamation bonds, Westwater will pay enCore US$3 million in cash. The amount of the reclamation bonds may be reduced by Westwater prior to closing through completion of reclamation work, in which event the Company will issue additional consideration shares priced as at the closing date, as follows: US$500,000 in Company shares upon Westwater completing scheduled 2020 Texas reclamation activities; and an additional US$250,000 in Company shares for every US$1,000,000 reduction of the current required bond amount.
The final Agreement is expected to be completed by year end 2020 and is dependent on final due diligence completion.
Completion of the transaction is subject to a number of conditions, including, but not limited to receipt of TSXV approval, satisfactory arrangements being in place for the replacement of the reclamation bonds, and completion of due diligence on the mineral projects and the Uranium Subsidiaries by the Company.
Dr. Douglas H. Underhill, CPG, a Qualified Person as defined by National Instrument 43-101 and Chief Geologist for the Company, has reviewed, verified, and approved disclosure of the technical information contained in this news release.