Westwater Resources, Inc., a company specializing in energy technology and battery-grade natural graphite development, provided an update on a debt transaction intended to finance the construction of Phase I of the Kellyton Graphite Processing Plant. Simultaneously, the company announced the completion of the definitive feasibility study for Phase II of the Kellyton Plant.
The debt transaction’s recent progress includes securing final investment committee approval from the lead lender, a global financial institution. Westwater Resources is currently collaborating with Cantor Fitzgerald to finalize the syndication process for the debt financing related to the Kellyton Plant. Delays in the expected closing of the debt financing transaction stem from the lead lender’s thorough due diligence process, reflecting the unique nature of the Kellyton Plant.
Noteworthy factors influencing the closure of the debt transaction include customary agreement on final terms, syndication completion, final due diligence, and meeting loan conditions. The company highlighted the importance of fulfilling these requirements to solidify the debt financing.
Moreover, Westwater Resources shared the results of its completed Definitive Feasibility Study for Phase II of the Kellyton Graphite Processing Plant. Key highlights from the study include estimated capital costs of $453 million, a pre-tax Net Present Value (NPV) of $1.4 billion at an 8% discount rate, and a projected pre-tax Internal Rate of Return (IRR) of approximately 31.8%. The study also outlined an estimated annual pre-tax cash flow of $192.6 million and planned annual production of CSPG to reach 37,500 metric tons.
It’s important to note that these estimates exclude any potential cost savings or synergies from Westwater’s Coosa Graphite Deposit. Previous disclosures indicated that the Coosa Graphite Deposit Initial Assessment suggested a stand-alone estimated pre-tax NPV-8% of $229 million and an estimated pre-tax free cash flow of $714 million.
Westwater Resources, Inc. is an energy technology company primarily focused on developing battery-grade natural graphite. The company’s flagship project, the Kellyton Graphite Processing Plant, is currently under construction in east-central Alabama, while the Coosa Graphite Deposit represents a significant natural flake graphite reserve in the contiguous United States.
This news release contains forward-looking statements subject to risks and uncertainties. Factors that could lead to actual results differing from the forward-looking information provided are discussed in Westwater’s annual SEC filings. It is advisable not to rely solely on the forward-looking information as a guarantee of future performance due to various external factors beyond the company’s control.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Westwater Resources’s 8K filing here.
Westwater Resources Company Profile
Westwater Resources, Inc operates as an energy technology company, focuses on developing battery-grade natural graphite materials. The company holds interests in Kellyton Graphite Plant located in Kellyton, Alabama; and Bama Mine Project situated in south Alabama. It holds interests in Coosa graphite project located in Coosa County, Alabama.
