- The stock price of Westwater Resources Inc (NYSEAMERICAN: WWR) increased by over 10% pre-market. This is why it happened.
The stock price of Westwater Resources Inc (NYSEAMERICAN: WWR) – a battery-grade natural graphite development company – increased by over 10% pre-market. Investors are responding positively to Westwater Resources announcing that its Board of Directors today approved expenditures of $202 million to execute the construction plan for Phase I of the Coosa Graphite Project located in Kellyton, Alabama. Construction activities are expected to begin before the end of 2021.
Plus the company’s Board of Directors approved the purchase of 2 buildings by its subsidiary Alabama Graphite Products, LLC that total 90,000 sq. ft. in size to support the development of the Coosa Graphite Project. And these buildings will be used for the Project’s administrative offices, laboratory, and warehousing space, and each is adjacent to the future processing plant. The purchase of these 2 buildings avoids the need for additional construction activities. The transactions are expected to close on or before October 14, 2021.
Westwater is known as an explorer and developer of US-based mineral resources essential to clean energy production in the United States. And the company plans to develop its Coosa Graphite Processing Facility to purify natural graphite concentrates and to produce battery-ready graphite products. And the Project will use state-of-the-art technology and processing techniques to extract and refine graphite concentrates with 95-97% graphitic carbon (Cg) content to make Coated Spherical Purified Graphite (“CSPG”) for Li-ion battery anodes.
Project Development Plan
Phase I: In early 2023, the Project is expected to start processing approximately 8,050 metric tons (mt) per year of graphite concentrate. And the feedstock is anticipated to be supplied from outside sources until at least 2028. After processing and purification and approximately 7,500 mt of two products would be available in the following quantities per year:
CSPG: 3,700 mt per year
Fine Products from SPG milling: 3,800 mt per year
Phase II: Although it is not yet approved, the processing capacity of feedstock for the Project is planned to increase to approximately 35,200 mt per year in 2024. And after processing and purification, approximately 32,400 mt of two products will be available in the following quantities:
CSPG: 15,800 mt per year
Fine Products from SPG milling: 16,600 mt per year
The property for the Project is located within the Lake Martin Regional Industrial Park, south of the town of Kellyton, in Coosa County, Alabama, and consists of approximately 73 acres. The nearest large population center is Alexander City, which lies approximately 5 miles southeast of the Project site.
Proprietary Technology
Westwater has been working with third-party technology providers and equipment suppliers to develop the processes for purifying graphite to levels greater than 99.95% Cg and then processing that graphite into battery-grade CSPG. And the result has been a unique, environmentally safe process utilizing relatively low temperatures and readily available industrial reagents. This process – for which WWR has made a patent application – is superior to processes used in China and elsewhere in terms of environmental safety. The Project (Phase I) is designed to process 8,050 metric tons per year of graphite.
The construction and operation of the proposed Coosa Graphite Processing Facility is expected to result in a positive effect on the socioeconomic characteristics of the regional area. And the majority of beneficial effects would result from the employment of over 100 personnel once the Project is in operation.
Underlying the Board’s decision is a definitive feasibility study (DFS) that was prepared by Samuel Engineering (SE) – along with support from other contractors and Westwater personnel. And in the DFS, SE developed a Level 2 execution schedule encompassing engineering, procurement, construction, and start-up of the first phase of the Coosa Graphite Processing Facility.
The critical path for plant construction and commissioning totals 17 months, supporting production in early 2023.
KEY QUOTE:
“With Westwater’s Board approval of the Project, we are proceeding directly to plant construction. Requests for proposals from contractors are in process, and construction is expected to start before the end of the year. I am proud of this team’s efforts to bring this business plan a giant step closer to reality.”
— Chris Jones, President and CEO
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
