Westwater Resources, Inc. (Nasdaq:WWR) (ASX:WWR),
an energy metals exploration and development company, is pleased to
announce that it has entered into a common stock purchase agreement
with Aspire Capital Fund, LLC. During the 30-month term of
the agreement, Aspire Capital has committed to purchase, at the
Company’s request, up to $22 million in the aggregate of Company’s
common stock (or such lesser amount as the Company may determine),
at prices based on the market price at the time of each sale.
Upon the execution of the agreement, the Company issued 880,000
common shares to Aspire Capital as a commitment fee. There
were no underwriting discounts or placement agent fees. There
is no hedging and no warrants, derivatives, or other share classes
associated with this agreement. Upon commencement of the
agreement, the Company sold to Aspire Capital 1,428,571 shares at
$1.40 per share for proceeds of $2,000,000. The Company
intends to use the net proceeds from this transaction for general
corporate purposes, which may include technical studies,
restoration commitments, capital expenditures and working capital.
Christopher M. Jones, President and Chief
Executive Officer, said, “Our Company has a strong and
long-standing relationship with Aspire Capital that allows for
financial deals with favorable terms in a market where capital is
otherwise difficult and expensive to obtain. We have the right to
control the timing and amount of common stock being sold,
therefore, over the next thirty months we can sell stock to Aspire
Capital opportunistically.”
The securities are being registered by the
Company pursuant to a shelf registration statement (File No.
333-216243), which was declared effective by the U.S. Securities
and Exchange Commission (the “SEC”) on March 9, 2017.
This news release does not and shall not
constitute an offer to sell or the solicitation of an offer to buy
any securities, nor shall it constitute an offer, solicitation or
sale in any jurisdiction in which, or to any person to whom, such
offer, solicitation or sale is unlawful. Details of the stock
purchase agreement will be filed with the SEC on Form 8-K.
About Westwater Resources
WWR (formerly known as Uranium Resources, Inc.)
is focused on expanding its energy metals strategy, which includes
developing its new lithium business while maintaining optionality
in the case of a future rising uranium price.
The Company is pursuing lithium exploration and
development projects that leverage our broad base of
hydrogeological, well field engineering and hydrometallurgical
expertise in the Western United States. This effort has expanded
and diversified our portfolio of assets for a geopolitically
balanced and complementary energy metals business to build
shareholder value. Since the second half of 2016, the Company
has identified and acquired three high potential lithium brine
exploration projects:
- The Columbus Basin Project in western Nevada, near
the only producing lithium mine in the United States, and where the
Company is currently executing an exploration drilling program with
results expected in Q4 2017.
- The Railroad Valley Project in east-central
Nevada.
- The Sal Rica Project in northwestern Utah.
With large battery manufacturing facilities,
such as Tesla’s “Gigafactory” near Reno, Nevada, the Company’s
three lithium projects are at the epicenter of lithium brine
development, production and consumption in the United States.
As well, Westwater Resources controls extensive
uranium mineral holdings in New Mexico and Texas, USA and a near
term, low operating cost development project in the Republic of
Turkey. In addition, WWR owns the Rosita and Kingsville Dome
uranium processing facilities in Texas, both of which are licensed
for production.
About Aspire Capital Fund,
LLC
Aspire Capital is a Chicago based institutional
investor that takes a fundamental investment approach and invests
in a wide range of companies and industries emphasizing life
sciences, energy and technology.
Cautionary Statement
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,” and other similar words. All statements
addressing events or developments that the Company expects or
anticipates will occur in the future, including but not limited to
statements relating to developments at the Company’s projects,
including future exploration costs and results, future demand for
and price of uranium and lithium, the use of proceeds from the
agreement with Aspire, and the Company’s liquidity, including
future capital markets and disposition activities, are
forward-looking statements. Because they are forward-looking,
they should be evaluated in light of important risk factors and
uncertainties. These risk factors and uncertainties include,
but are not limited to, (a) estimated or expected net cash used in
operations, mineral property expenses, general and administrative
expenses, net loss, and cash and working capital positions for the
twelve months ended December 31, 2017; (b) the Company’s ability to
raise additional capital in the future; (c) spot price and
long-term contract price of uranium and lithium; (d) risks
associated with our foreign operations; (e) operating conditions at
the Company’s projects; (f) government and tribal regulation of the
uranium industry, the lithium industry, and the power industry; (g)
world-wide uranium and lithium supply and demand, including the
supply and demand for lithium-based batteries; (h) maintaining
sufficient financial assurance in the form of sufficiently
collateralized surety instruments; (i) unanticipated geological,
processing, regulatory and legal or other problems the Company may
encounter in the jurisdictions where the Company operates,
including in Texas, New Mexico, Utah, Nevada and Republic of
Turkey; (j) the ability of the Company to enter into and
successfully close acquisitions or other material transactions; (k)
the results of the Company’s lithium brine exploration activities
at the Columbus Basin, Railroad Valley and Sal Rica Projects; (l)
the ability of the Company to negotiate an extension on the
Cebolleta lease and (m) other factors which are more fully
described in the Company’s Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and other filings with the Securities and
Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should any of the Company’s
underlying assumptions prove incorrect, actual results may vary
materially from those currently anticipated. In addition, undue
reliance should not be placed on the Company’s forward-looking
statements. 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.
Westwater Resources Contact: Christopher M.
Jones, President and CEO 303.531.0480
Jeff Vigil, VP Finance and CFO303.531.0481 Email:
Info@WestwaterResources.netWebsite: www.WestwaterResources.net
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