TORONTO, June 17,
2024 /CNW/ - Global Atomic Corporation ("Global
Atomic" or the "Company"), (TSX: GLO) (OTCQX: GLATF) (FRANKFURT:
G12) today provided an update on its financing and development of
the Dasa Uranium Project in the Republic of Niger, including:
- Updates on the approaches made to the Company to finance the
development of the Dasa Project and timeline for the approval of
the proposed US$295 million debt
financing facility led by a US development bank
- Updates on the recent trip to Niger by President & CEO, Stephen G. Roman, CFO, Rein Lehari, and Chief
Technology Officer, Dr. Santiago
Faucher
Dasa Uranium Project – Financing Options
To complete the project financing for the development of the
Dasa Project, the Company has received several approaches,
including:
- The proposed US$295 million debt
financing, led by a U.S. development bank which is advancing to the
approval stage;
- Approaches from a variety of sources for pre-payments on
uranium delivery contracts;
- Approaches for a strategic equity investment into the Company
from a number of financial institutions and private equity
firms;
- Approaches for a minority Joint Venture investment at the
project level; and
- Approaches from investment banks for an equity financing.
The Company is actively considering the host of funding options
available and intends to advance several of the options in parallel
in order to determine the preferred funding structure.
Dasa Uranium Project – Debt Financing
- The U.S. development bank that will provide the proposed
US$295 million debt financing
facility for the development of the Dasa Project, has continued to
actively make progress and is completing the final documentation to
submit to its Credit Committee for approval, which has now been
scheduled to take place in mid-July
2024.
- With approval at the Committee level, the Company expects final
review by the bank's Board of Directors in September.
Global Atomic President and CEO, Stephen
G. Roman commented: "We are excited with the
prospect of partnering with the U.S development bank. We believe
that the advancement of the Dasa Project aligns with the strategic
priorities of the United States Government and its efforts to
secure uranium supply and reduce dependence on Russia. We believe the U.S. Government
recognizes the significance of the Dasa Project and its meaningful
contribution to global uranium supply diversification."
Dasa Uranium Project – Recent Site Visit
During the recent visit to Niger, Company executives:
- Met with several government officials, including the Mines
Minister, Commissaire Colonel Ousmane
Abarchi, who confirmed his support for Dasa and offered his
office's assistance to streamline administrative bottlenecks and
offer assistance to facilitate the timely importation of supplies
and equipment.
- Visited the Dasa site to review the progress of the underground
development as well as the earthworks being undertaken to prepare
for the installation of the processing plant and the associated
camp for the construction crew.
- Witnessed the exemplary safety measures and practices of the
SOMIDA team, which has now achieved 675 days without a Lost Time
Injury ("LTI").
- Attended a meeting of the SOMIDA Board of Directors, where our
new Board chairman Mr. Abdourazakou Abdou Moumouni, who represents
the office of the President of Niger, was appointed. The new Chairman is an
experienced mining engineer having worked previously at Orano
Mining's Cominak and Somair mines.
Global Atomic President and CEO, Stephen G. Roman commented, "During my most
recent trip to Niger, I had the
privilege of meeting Niger's Mines
Minister. The Government of Niger
continues to provide strong support for Dasa, and praised SOMIDA's
progress to date, which he witnessed during his site visit in early
May."
"At our Dasa Project, I was pleased with the morale, work
ethic and progress being made by the mining and site development
teams. From mining to camp construction to site preparation
for the plant to equipment maintenance to health and safety to
community engagement, the whole team is working well together and
making excellent progress."
"The implementation of innovative solutions, such as
controlled blasting of large surface rocks to assist the work of
the rock-breaking equipment, are accelerating our pace to complete
the project on time and on budget. I commend the Dasa
team for keeping the project on schedule and for implementing
best-practice operating policies to keep the team productive and
safe."
"The key area of focus at Dasa is logistics. Hundreds of
trucks bearing plant equipment and mining supplies will be arriving
at site between now and the end of construction in Q4 2025. The
continued closure of the Benin
border prevents access to the port of Cotonou, the closest and
historically most used ocean port for Niger. While we are having success using other
ports, delays can occur from time to time at various points along
these extended routes. The government assistance offered to us by
the Mines Minister to help expedite our inbound shipments is very
much appreciated as the timely importation of materials is critical
for Dasa and the realization of the tremendous benefits that Dasa
can deliver to our shareholders, the Niger government, its people and further
reduce dependance on fossil fuels and electrify the world economy
through clean and reliable nuclear energy."
"We look forward to the final approval of our debt facility
by the US development bank in Q3 to finance the Dasa processing
plant. The debt financing facility will provide 60% of the project
funding and 50% of cost overruns, if any. The Company has already
invested approximately US$90 million
of the required equity portion of the Dasa financing and is well
advanced with project development."
Below are photos of Management's recent site visit which are
available on the Company's website www.globalatomiccorp.com.
About Global Atomic
Global Atomic Corporation (www.globalatomiccorp.com) is a
publicly listed company that provides a unique combination of
high-grade uranium mine development and cash-flowing zinc
concentrate production.
The Company's Uranium Division is currently developing the fully
permitted, large, high grade Dasa Deposit, discovered in 2010 by
Global Atomic geologists through grassroots field exploration. The
"First Blast Ceremony" occurred on November
5, 2022, and commissioning of the processing plant is
scheduled for Q1, 2026. Global Atomic has also identified 3
additional uranium deposits in Niger that will be advanced with further
assessment work.
Global Atomic's Base Metals Division holds a 49% interest in the
Befesa Silvermet Turkey, S.L. (BST) Joint Venture, which operates a
modern zinc recycling plant, located in Iskenderun, Türkiye. The
plant recovers zinc from Electric Arc Furnace Dust (EAFD) to
produce a high-grade zinc oxide concentrate which is sold to zinc
smelters around the world. The Company's joint venture partner,
Befesa Zinc S.A.U. (Befesa) holds a 51% interest in and is the
operator of the BST Joint Venture. Befesa is a market leader in
EAFD recycling, with approximately 50% of the European EAFD market
and facilities located throughout Europe, Asia
and the United States of
America.
The information in this release may contain forward-looking
information under applicable securities laws. Forward-looking
information includes, but is not limited to, statements with
respect to completion of any financings; Global Atomics'
development potential and timetable of its operations, development
and exploration assets; Global Atomics' ability to raise additional
funds necessary; the future price of uranium; the estimation of
mineral reserves and resources; conclusions of economic evaluation;
the realization of mineral reserve estimates; the timing and amount
of estimated future production, development and exploration; cost
of future activities; capital and operating expenditures; success
of exploration activities; mining or processing issues; currency
exchange rates; government regulation of mining operations; and
environmental and permitting risks. Generally,
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "is expected",
"estimates", variations of such words and phrases or
statements that certain actions, events or results "could",
"would", "might", "will be taken", "will begin", "will include",
"are expected", "occur" or "be achieved". All information
contained in this news release, other than statements of current or
historical fact, is forward-looking information.
Statements of forward-looking information are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Global Atomic to be materially different from those expressed or
implied by such forward-looking statements, including but not
limited to those risks described in the annual information form of
Global Atomic and in its public documents filed on SEDAR from time
to time.
Forward-looking statements are based on the opinions and
estimates of management at the date such statements are made.
Although management of Global Atomic has attempted to identify
important factors that could cause actual results to be materially
different from those forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance upon
forward-looking statements. Global Atomic does not undertake
to update any forward-looking statements, except in accordance with
applicable securities law. Readers should also review the
risks and uncertainties sections of Global Atomics' annual and
interim MD&As.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this news
release.
SOURCE Global Atomic Corporation