Westwater Resources Inc (NYSE-A:WWR) said it plans to close a financing deal to fund the remaining capital requirements for the initial phase of its flagship Kellyton Graphite Processing Plant as it reported its second-quarter results.
“The interest in funding our project remains strong. We are engaged with multiple potential lenders and are in negotiations on deal structure and terms with a subset of those parties,” Steve Cates, Westwater’s chief financial officer and SVP – Finance, said in a statement.
“While the credit markets have been tight in recent months, there are lenders wanting to invest in the energy transition. Based on our lender engagement, we believe finalizing a definitive sales agreement is a critical piece needed to secure the additional funding to complete the initial phase of the Kellyton Plant.”
During the second quarter ended June 30, 2023, the company said it continued construction at the Kellyton Plant and is currently operating its research and development laboratory.
The company continues to estimate that the total costs of the initial phase of the Kellyton Plant will be at $271 million.
As of end June, Westwater had a cash balance of $17.3 million while working capital stood at $11.8 million, compared to $75.2 million and $51.0 million respectively at December 31, 2022.
The drop in cash was primarily due to capital expenditures of $51.9 million and $8.9 million used in operations, it added.
The company said its consolidated net loss for the second quarter of 2023 widened by $0.4 million compared to the second quarter of 2022, mainly due to higher product development costs during the period.
Also during the quarter, Westwater began a preliminary economic assessment for the Coosa Graphite Deposit.
“Until the Coosa Graphite Deposit comes online, Westwater believes it has secured sufficient supply of natural graphite concentrate feedstock for the Kellyton Plant pursuant to a supply contract with Syrah Resources Limited,” the company said.
Westwater is an energy technology company focused on developing battery-grade natural graphite.