We updated coverage of Alabama Graphite, a developer of graphite resources in the U.S., following report of financial results in the fiscal fourth quarter ending August 2017. The Company is also the recipient of a buyout offer from Westwater Resources (WWR), a junior mining company with interests in uranium and lithium. The Company announced in mid-December 2017, that Westwater had offered 0.08 of a share of its own common stock to acquire 100% ownership of Alabama Graphite. On the date of the announcement the offer was equivalent to CA$0.11 (US$0.09) per share.
The deal would create a portfolio of graphite, lithium and uranium assets that Westwater has so far described as a ‘green energy’ mix. In the anticipated mix, Alabama Graphite’s Coosa Project in Alabama appears to be the mostly likely to enter commercial production. In October 2017, the Company received a letter of intent from an unnamed battery manufacturer for 10 metric tons per year of Alabama Graphite’s Purified Micronized Graphite (PMG) for use in enhancing battery performance. Interest from this customer was apparently triggered in part by test results completed earlier in 2017, by battery research and development company, RSR Technologies.
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