Westwater Resources, Inc. Announces Letter of Intent for Sale of Battery Graphite
125-250 metric tons CSPG expected to be delivered in 2023Westwater Resources Inc. (NYSE: American: WWR) ("Westwater Resources" or the "Company"), a battery-grade, natural graphite development company, today announced it has signed a letter of intent to sell 125-250 metric tons of Coated Spherical Purified Graphite (CSPG) for lithium-ion batteries in 2023 with an option on an additional 16,000 metric tons for delivery in 2025 , all subject to customary conditions and quality and packaging specifications, which can be expected to be included in a future definitive agreement. These deliveries are expected to be made from Westwater's planned Coosa Graphite Project and are subject to the execution of definitive agreements that are expected to be negotiated over the coming months.
"The Company continues to make rapid headway on our Coosa Graphite Project. This letter of intent to sell CSPG into the market is a validation of the demand for battery graphite from our Project," said Chris Jones, President and CEO of Westwater Resources. "Once we completed our pilot program in 2021, samples of our product were sent to several customers for evaluation, and we continue to engage with various battery manufacturers, OEMs and battery developers. Our team is fully engaged in the work of planning the construction of our production facility in Kellyton, Alabama. With the acquisition of existing buildings and land previously announced, we are targeting plant operations in the first half of 2023. "
About Westwater Resources Inc.
Westwater Resources Inc. (NYSE American: WWR) is focused on developing battery-grade graphite. The Company's primary project is the Coosa Graphite Project - the most advanced natural flake graphite project in the contiguous United States - and the associated Coosa Graphite Deposit located across 41,900 acres (~17,000 hectares) in east-central Alabama. For more information, visit www.westwaterresources.net.
Cautionary Statement Regarding Forward-Looking Statements
This news release 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," "believes," "could," "scheduled," and other similar words. Forward-looking statements include, among other things, statements concerning the negotiation of a purchase agreement with a potential purchaser, target plant operation date, construction and operation of the Company's graphite processing facility and the related costs and schedules associated therewith, estimated production levels, expected sources of graphite feedstock, potential sources of capital and expected benefit from the Alabama Jobs Act and tax credits. The company cautions that there are certain factors that could cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of the company; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Westwater Resources' Annual Report on Form 10-K for the year ended December 31, 2020, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: (a) the spot price and long-term contract price of graphite (both flake graphite feedstock and purified graphite products) and vanadium, and the world-wide supply and demand of graphite and vanadium; (b) the effects, extent and timing of the entry of additional competition in the markets in which the Company operates; (c) the ability to negotiate, obtain and execute upon contracts with customers; (d) available sources and transportation of graphite feedstock; (e) government regulation of the mining and processing industries in the United States; (f) the Company's ability to maintain and timely receive mining and other permits from regulatory agencies; (g) the ability to control costs and avoid cost and schedule overruns during the development, construction and operation of the Project; (h) risks associated with the Company's operations and the operations of the Company's partners, including the impact of COVID-19 and supply chain disruptions; (i) unanticipated geological, processing, regulatory and legal or other problems the Company may encounter; (j) the results of the Company's exploration activities, and the possibility that future exploration results may be materially less promising than initial exploration results; (kl) any graphite or vanadium discoveries not being in high enough concentration to make it economic to extract the metals; (m) the Company's ability to finance growth plans; and (l) currently pending or new litigation or arbitration. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
Contact
Westwater Resources Inc.
Christopher M. Jones, President & CEO
Phone: 303.531.0480
Jeff Vigil, VP Finance & CFO
Phone: 303.531.0481
Email: Info@WestwaterResources.net
Product Sales Contact:
Jay Wago, Vice President - Sales and Marketing
Phone: 303.531.0472
Email: Sales@westwaterresources.net
Investor Relations
Porter, LeVay & Rose
Michael Porter, President
Phone: 212.564.4700
Email: Westwater@plrinvest.com