Supports the Development of U.S. Domestic
Supply of Graphite
Westwater Resources, Inc. (“Westwater”) (NASDAQ: WWR), an
energy materials development company, applauds the President’s
Executive Order (“Order”) signed on September 30, 2020, that
addresses the threat to the U.S. domestic supply chain from
reliance on critical minerals from foreign adversaries. The
critical minerals referred to in the Order were previously
identified by the Department of the Interior in May 2018, and
include both natural graphite and vanadium.
The President’s declaration that the United States' heavy
reliance on foreign nations for critical minerals is a national
emergency highlights the importance of Westwater’s plans to develop
the Coosa Graphite Deposit in east-central Alabama. Westwater’s
business plan for the Coosa Graphite Project over the next two and
a half years is to develop a U.S. domestic supply for natural
graphite for use in all types of batteries in the United States.
During recent exploration activities along the Roscoe Ridge at the
mine site, Westwater has also discovered widespread and significant
levels of vanadium mineralization.
The U.S. is 100% dependent on imports for graphite, which is the
primary anode material in lithium-ion batteries that power
smartphones, laptops, and electric vehicles, and stores power from
intermittent renewable energy sources. Graphite was specifically
named as one of the critical minerals in which the U.S. is heavily
dependent on China for its supply. Also, vanadium is an essential
component in the manufacture of high-strength steel, is used as a
catalyst in chemical manufacturing, and is also used as a component
in the manufacturing of some ceramic, glass, and pigment products.
The U.S. imports virtually all of its industrial vanadium
requirements from mines located in South Africa, China, and
Russia.
Christopher M. Jones, President and Chief Executive Officer of
Westwater, said, “The President’s Executive Order opens up new
avenues for financing and permitting our Coosa Graphite Project –
this is good news for Westwater Resources and the United
States.”
In the Order the President says, “a strong America cannot be
dependent on imports from foreign adversaries for the critical
minerals that are increasingly necessary to maintain our economic
and military strength in the 21st century.” The President said the
heavy dependence on imports for critical minerals makes the U.S.
vulnerable to adverse foreign government action, natural disaster,
or other supply disruptions.
“I therefore determine that our nation's undue reliance on
critical minerals, in processed or unprocessed form, from foreign
adversaries constitutes an unusual and extraordinary threat, which
has its source in substantial part outside the United States, to
the national security, foreign policy, and economy of the United
States. I hereby declare a national emergency to deal with that
threat,” Trump penned in the Executive Order.
Further details on Trump's critical mineral Executive Order can
be read at
https://www.whitehouse.gov/presidential-actions/executive-order-addressing-threat-domestic-supply-chain-reliance-critical-minerals-foreign-adversaries.
Westwater is uniquely positioned to benefit from the action the
U.S. government is taking to ensure that America and its technology
manufacturers can rely on a safe and secure source of graphite to
power our next generation of power and technology needs and
possibly to meet needs for vanadium as well. The action by the
President orders the Office of Science and Technology, the
Secretary of Defense, the Secretary of Energy, and the Secretary of
the Interior to provide guidance to clarify which minerals and
projects are eligible for government support, which can include
loans or grants, under Title XVII of the Energy Policy Act of 2005.
Furthermore, these agencies are directed along with the Secretary
of Commerce, the Administrator for the Environmental Protection
Agency, and the Secretary of the Army, to use all available
authorities to accelerate the issuance of permits in connection
with expanding and protecting the U.S. domestic supply chain for
minerals such as graphite.
Westwater is evaluating the Order and how to best approach the
relevant agencies in the U.S. Government to emphasize the
importance of battery graphite, its importance to the nation’s
security, and how the Coosa Graphite Project in Alabama fits into
the enactment of critical minerals policy.
About Westwater Resources
Westwater Resources (NASDAQ: WWR) is focused on developing
energy-related materials. The Company’s battery-materials projects
include 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. Commencement of the
pilot plant operations is scheduled for the fourth quarter of 2020,
producing ULTRA-PMG™, ULTRA-DEXDG™ and ULTRA-CSPG™ in quantities
that facilitate qualification testing at potential customers. For
more information, visit www.westwaterresources.net.
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,"
“scheduled,” and other similar words. All statements addressing
events or developments that WWR expects or anticipates will occur
in the future, including but not limited to the activities
involving the Coosa Graphite Project and the Coosa Graphite
Deposit. 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) the
Company’s ability to successfully construct and operate a pilot
plant capable of producing battery grade materials in quantities
and on schedules consistent with the Coosa Graphite Project
business plan; (b) the Company’s ability to raise additional
capital in the future including the ability to utilize existing
financing facilities; (c) spot price and long-term contract price
of graphite and vanadium; (d) risks associated with our operations
and the operations of our partners such as Dorfner Anzaplan,
including the impact of COVID-19 and its potential impacts to the
capital markets; (e) operating conditions at the Company’s
projects; (f) government and tribal regulation of the graphite
industry and the vanadium industry; (g) world-wide graphite and
vanadium supply and demand, including the supply and demand for
lithium-based batteries; (h) unanticipated geological, processing,
regulatory and legal or other problems the Company may encounter in
the jurisdictions where the Company operates or intends to operate,
including but not limited to Alabama; (i) the ability of the
Company to enter into and successfully close acquisitions or other
material transactions, including the proposed transaction to sell
uranium assets in Texas and New Mexico to enCore Energy; (j) any
graphite or vanadium discoveries not being in high-enough
concentration to make it economic to extract the minerals; (k)
currently pending or new litigation or arbitration; and (l) 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20201005005284/en/
Westwater Resources Contact: 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 Contact: Porter, LeVay & Rose
Michael Porter Phone: 212.564.4700 Email:
Westwater@plrinvest.com
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