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CENTENNIAL, Colo. - Westwater Resources, Inc. (NYSE American:WWR) announced Thursday that FCA US LLC, a subsidiary of Stellantis N.V., unexpectedly terminated its binding offtake agreement on November 3, prompting the company to pause its debt syndication efforts and reevaluate its Kellyton Graphite Plant development plans. The news has contributed to WWR's steep 20.29% decline over the past week, according to InvestingPro data.
The company, which focuses on developing battery-grade natural graphite, reported that offtake agreements with SK On and Hiller Carbon remain in effect. Westwater is now working to optimize Phase I of its Kellyton Plant to match processing capacity with existing commitments, which it expects will reduce capital requirements and time to commercial production.
"We are focused on optimizing the Kellyton Plant to meet our current offtake commitments, which should reduce the total capital needed to complete Phase I," said Terence Cryan, Executive Chairman of Westwater Resources, in a press release statement.
The company has raised approximately $55 million since June 30, 2025, through its at-the-market program and convertible note offerings. As of November 5, Westwater reported a cash balance of approximately $53 million.
While the company's application with the U.S. Export-Import Bank has been delayed due to the recent government shutdown, Westwater continues to pursue other government funding opportunities.
The graphite developer plans to complete its optimization evaluation by year-end and will provide an update in early 2026. Westwater indicated that FCA has expressed openness to reconsidering a new arrangement based on current market conditions.
The company has scheduled a conference call to provide a business update on November 13, 2025.
In other recent news, Westwater Resources reported its Q2 2025 earnings, revealing an earnings per share (EPS) loss of $0.05, which missed analyst expectations. Despite this, the company's strategic advances in graphite production and financing efforts seem to have bolstered market confidence. Additionally, Westwater Resources has initiated the permitting process for its Coosa Graphite Deposit in Alabama, engaging a third-party engineering firm to lead these efforts. The company plans to work with the U.S. Army Corps of Engineers and the Alabama Department of Environmental Management in the coming months.
Furthermore, Westwater Resources has filed a prospectus supplement to register the offer and sale of up to $75 million in common stock under its existing at-the-market (ATM) offering agreement with H.C. Wainwright. This is in addition to approximately $55 million in shares previously sold under the same agreement. The ATM agreement, originally entered into on August 30, 2024, allows the company to sell shares of its common stock from time to time through at-the-market transactions. These recent developments highlight Westwater Resources' efforts to advance its graphite projects and secure financial resources.
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