Westwater Announces Royalty and Promissory Note Sale for $2.75 Million

Uranium Royalty Corp. to buy four royalties on uranium properties
located in South Dakota, Wyoming and New Mexico and a promissory note
due 2020 for $2.75 million

CENTENNIAL, Colo.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24WWR&src=ctag” target=”_blank”gt;$WWRlt;/agt; lt;a href=”https://twitter.com/hashtag/uranium?src=hash” target=”_blank”gt;#uraniumlt;/agt;–Westwater Resources, Inc. (“Westwater,” or the “Company”) (Nasdaq:
WWR)
, an energy materials development company, today
announced that Uranium Royalty Corp. (URC) and its US subsidiary have
together agreed to purchase royalties owned by Westwater on future
uranium production from mineral properties in South Dakota, Wyoming and
New Mexico, as well as a promissory note in the amount of $2.0 million
and the related mortgage that the Company holds on the Church Rock and
Crownpoint, New Mexico properties of Laramide Resources. Uranium Royalty
Corp. and its US subsidiary have agreed to purchase these interests for
collective total consideration of $2.75 million, including $0.5 million
paid at signing. The balance of $2.25 million will become due and
payable at the earlier of June 30, 2019 or following the date upon which
the closing conditions are satisfied.

Christopher M. Jones, President and CEO of Westwater, stated, “We
continue to opportunistically manage our assets, with the goal of
maximizing value to our shareholders. In this instance, we divested our
non-core holdings for immediate cash consideration. This transaction
monetizes our uranium royalty portfolio and moves forward income from
2020 to 2019. Uranium Royalty’s unique model for funding uranium
projects is well-timed for the industry. This is a win-win for both our
companies.”

The Westwater Royalty Portfolio being sold to URC under the Asset
Purchase Agreement consists of:

  • A 4% net returns royalty on future uranium production from Laramide
    Resources’ Church Rock property located in New Mexico;
  • A 30% net proceeds royalty on future uranium production from a portion
    of Azarga Uranium’s Dewey-Burdock property located in South Dakota;
  • An up to 4% overriding royalty on part of Peninsula Energy’s future
    uranium production from its Lance Project located in Wyoming; and
  • A 4% royalty on the gross value from uranium production from a portion
    of Energy Fuels’ Roca Honda property located in New Mexico.

The sale also includes a promissory note secured by a mortgage held by
Westwater on Laramide Resources’ Church Rock and Crownpoint, New Mexico
uranium properties, with four remaining payments due through maturity on
January 5, 2020. Westwater will be entitled to retain any interest
payments on the promissory note made before the closing of the
transaction.

About Westwater Resources

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 Mine located across over 41,000
acres (~17,000 hectares) in east-central Alabama. In addition, the
Company maintains lithium mineral properties in three prospective
lithium brine basins in Nevada and Utah. Westwater’s uranium projects
are located in Texas and New Mexico. In Texas, the Company has two
licensed and currently idled uranium processing facilities and
approximately 11,000 acres (~4,400 hectares) of prospective in-situ
recovery uranium projects. In New Mexico, the Company controls mineral
rights encompassing approximately 188,700 acres (~76,000 hectares) in
the prolific Grants Mineral Belt, which is one of the largest
concentrations of sandstone-hosted uranium deposits in the world.
Incorporated in 1977 as Uranium Resources, Inc., Westwater also owns an
extensive uranium information database of historic drill hole logs,
assay certificates, maps and technical reports for the western United
States. For more information please 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,” 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
statements relating to the closing of the transaction with URC, 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) the availability of capital to the Company and the
Company’s ability to continue as a going concern; (b) the availability
of the Company to continue to satisfy the listing requirements of the
Nasdaq Capital Market; (c) spot price and long-term contract prices of
graphite, lithium, vanadium and uranium; (d) the ability of the Company
to enter into and successfully close acquisitions, dispositions or other
material transactions; (e) government regulation of the mining industry
and the nuclear power industry in the United States; (f) operating
conditions at the Company’s projects; (g) the world-wide supply and
demand of graphite, vanadium, lithium and uranium; (h) weather
conditions; (i) unanticipated geological, processing, regulatory and
legal or other problems the Company may encounter; (j) the results of
the Company’s exploration activities, and the possibility that future
exploration results may be materially less promising than initial
exploration result; (k) any graphite, vanadium, lithium or uranium
discoveries not being in high enough concentration to make it economic
to extract the metals; (l) currently pending or new litigation or
arbitration; (m) the Company’s ability to maintain and timely receive
mining and other permits from regulatory agencies; and (n) 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. The results of the initial optimization
study are preliminary in nature and subject to revision following WWR’s
further analysis of the Coosa Graphite Project.

Contacts

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

Investor
Relations Contact:

Michael Porter
Porter, LeVay and Rose
Phone:
212.564.4700
Email: Westwater@plrinvest.com

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