Westwater Resources enters into exclusivity for $150 million secured debt facility with global financial institution
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Debt facility will be used to complete Phase I construction at Kellyton Plant
During an investor presentation in California on Wednesday, Westwater provided updates about its Kellyton Plant.
Special to the News
Westwater Resources Inc., an energy technology and battery-grade natural graphite development company, announced on Wednesday that it has executed a term sheet and agreed to exclusivity with a global financial institution for a $150 million secured debt facility, which would be used to complete the construction of Phase I of the Kellyton Plant.
“Following the announcement of our second offtake agreement in July, Westwater has reached another significant milestone by entering into exclusivity with a global financial institution for a debt facility that is expected to provide the necessary capital to complete construction at the Kellyton Plant,” said Terence J. Cryan, Westwater’s executive chairman. “We anticipate a busy and active fall as we work through diligence, loan documentation and target closing in the fourth quarter of this year.”
In support of closing the debt financing, Westwater has engaged McDermott Will & Emery as counsel and Cantor Fitzgerald as its investment banker.
The progression from signing the term sheet to loan closing is subject to customary agreement on final terms, due diligence and loan conditions.
Investor Presentation
Westwater announced in its second quarter press release that it planned to provide an update to investors following Labor Day. Westwater provided this update by presenting at the 2024 Annual Gateway Conference on Wednesday, September 4, in San Francisco, California.
The presentation will be accessible to investors via webcast live and available for replay at https://wsw.com/webcast/gateway2/wwr/2028288. Terence Cryan and Steve Cates, chief financial officer, presented at the conference.
During the presentation, Cryan stated that the company plans to develop the Coosa graphite deposit and bring it online in late 2028 and that Westwater plans to be in operation at Kellyton in early 2026 with the off-take agreements the company has in place.
Additionally, he reported that more than two years into the construction at Kellyton, they have all the primary buildings up and are beginning to install equipment in them.
During the presentation, Cates also stated that the Kellyton graphite processing plant and the Coosa graphite deposit together will represent the first fully integrated domestic battery-grade graphite project in the country that is “owned and operated by a 100% U.S.-based company.”
About Westwater Resources Inc.
Westwater Resources is focused on developing battery-grade natural graphite products. The company’s primary project is the Kellyton Graphite Plant that is under construction in east-central Alabama.
In addition, the company’s Coosa graphite deposit is the largest and most advanced natural flake graphite deposit in the contiguous United States, which is located across 41,965 acres (approximately 17,000 hectares) in Coosa County, Alabama. For more information, visit www.westwaterresources.net.
Reporter Christa Jennings contributed to this report.
