Idaho Strategic Resources (IDR) has withdrawn its business combination proposal to acquire Westwater Resources, Inc. for $1.36/share. According to IDR, Westwater’s board was unwilling to constructively engage in discussions around a potential combination.
Westwater is developing battery-grade natural graphite. Its primary project is the Kellyton graphite processing plant that is under construction in east-central Alabama, which would process graphite mined from the nearby Coosa natural flake graphite deposit. IDR produces gold at the Golden Chest mine located in Coeur d’Alene Mining District. It also has interests in rare earth elements and thorium deposits in central Idaho.
“We are disappointed that the Westwater board has refused to even discuss the potential combination of our two companies and ignored our proposal,” said John Swallow, president and CEO of IDR.
During early December Westwater acknowledge receipt of the unsolicited bid from IDR and said it lacked important information regarding the ability of IDR to finance its existing business plans. Furthermore, the proposal did not include any information regarding the ability of a combined company to advance the construction of the Kellyton Plant or Westwater’s business plans. On December 19, 2022, the board and management determined that, at this time, it was not in the best interests of the company to pursue the proposal further.
