Westwater Resources, Inc. (NYSE American: WWR), an energy technology and battery-grade natural graphite development company (“Westwater” or the “Company”), announces that it has received final investment committee approval from the lead lender (a global financial institution), and the Company is working with Cantor Fitzgerald to finalize the overall syndication and closing of the debt financing for the Kellyton Plant. As a result, the estimated timing to close a debt financing transaction has been delayed.
“Given the ‘first of its kind’ nature of the Kellyton Plant, the due diligence process undertaken by the lead lender has been significant, and we are pleased to have approval from the lead lender,” said Steve Cates, Westwater’s SVP-Finance and CFO. “We are focused on getting the other interested lenders through their diligence and approval process and will provide further updates on timing once we have a better line of sight to closing.”
Westwater notes the closing of the debt transaction is also subject to customary agreement on final terms, completion of the syndication, final due diligence, and loan conditions.
Kellyton Graphite Processing Plant - Phase II Definitive Feasibility Study
The Company is also announcing the results of its completed Definitive Feasibility Study (“DFS”) for Phase II and reminds investors that a portion of the Phase II capacity is already committed via the previously announced offtake agreements.
The estimated Phase II amounts below exclude contribution from Phase I of the Kellyton Graphite Processing Plant.
- Estimated capital costs for Phase II is $453 million, including a 20% contingency.
- Estimated pre-tax NPV of $1.4 billion (at an 8% discount rate).
- Total estimated cumulative pre-tax cash flows of $6.3 billion over an estimated operating life of 35-years.
- Estimated pre-tax IRR of approximately 31.8%.
- Estimated annual pre-tax, cash flow of $192.6 million.
- Planned annual production of CSPG to 37,500 metric tons (Total Kellyton capacity projected as 50,000 MT including Phase I and II).
