Westwater Resources, Inc. (“Westwater,” or the “Company”) (Nasdaq: WWR), an energy materials development company, today announced the completion of the sale of four production royalties to Uranium Royalty Corporation (URC). Westwater received the final payment from URC of $1.25 million and assigned to URC its interests in royalties on future uranium production from certain mineral properties in South Dakota, Wyoming and New Mexico, as well as the promissory note and the related mortgage that the Company holds on the Church Rock and Crownpoint, New Mexico properties owned by Laramide Resources. Uranium Royalty Corporation purchased these interests for a collective total consideration of $2.75 million.

Christopher M. Jones, President and CEO of Westwater Resources, stated, “We continue to opportunistically manage our assets, with the goal of maximizing value to our shareholders. In this instance, we divested these non-core holdings at favorable terms. This transaction moves forward cash flows for Westwater from 2020 to 2019, monetizes a portion of our uranium property portfolio, and underpins URC’s investment portfolio. This is a win-win for both our companies.“

The Westwater royalty portfolio being sold to URC under the Asset Purchase Agreement includes:

A 4% Net Smelter Return Royalty on future uranium production from Laramide Resources’ Church Rock property, located in New Mexico;
A 30% Net Profits Interest on future uranium production from a portion of Azarga Uranium’s Dewey-Burdock property, located in South Dakota;
A 4% Overriding Royalty Interest on certain properties within Peninsula Energy Ltd.’s Lance In-Situ Recover mine, located in north-eastern Wyoming; and
A 4% Net Smelter Interest Royalty on uranium production from a portion of Energy Fuels, Inc.’s Roca Honda development project, located in New Mexico.
The sale to URC also includes a $2.0 million promissory note held by Westwater, which is secured by a mortgage on Laramide Resources’ Church Rock and Crownpoint, New Mexico uranium properties. The final $2.0 million payment under the promissory note is due January 5, 2020 and is payable in cash and up to $1.0 million in value of shares of Laramide Resources.

Completion of this transaction will facilitate Westwater’s efforts to progress to production the Company’s advanced-stage Coosa graphite-vanadium project, which is situated in central Alabama.

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 41,900 acres (~17,000 hectares) in east-central Alabama. In addition, the Company maintains lithium mineral properties in 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.