U.S. Development Bank Confirms Schedule for
Dasa Funding Approval
TORONTO, Oct. 29,
2024 /CNW/ - Global Atomic Corporation ("Global
Atomic" or the "Company"), (TSX: GLO) (OTCQX: GLATF) (FRANKFURT:
G12) is pleased to provide an update on its Dasa Project in the
Republic of Niger. Dasa is
the highest-grade uranium deposit in Africa surpassed only by grades found in
Canada's Athabasca Basin and is scheduled to achieve
commercial production in early 2026.
PROJECT FINANCING
As indicated by the U.S. development bank (the "Bank") with whom
the Company is engaged in project finance discussions and disclosed
by the Company on October 3, 2024,
the Bank has provided an updated schedule for the approval of a
debt facility to fund the development of Dasa.
In recent positive meetings with the Company, the Bank confirmed
its support for Dasa and its intention to approve a debt facility
for US$295 million, which will cover
60% of the planned project costs. By early Q1 2025, the Bank
intends to conclude its approval process, including Committee and
Board level approvals.
President and CEO of Global Atomic, Stephen G. Roman, stated, "Receiving this
update from the U.S. development bank is good news. Although
we continue to assess a number of other financing options, we
believe the development bank offers the best financing solution for
the benefit of our shareholders and our nuclear power utility
customers. The approval timelines outlined by the bank
support yellowcake deliveries in 2026 as anticipated in the four
off-take agreements we have in place with American and European
nuclear power utilities."
"To help fund the continuing development of Dasa until the
bank funds are available, earlier this month we raised C$40 million in an oversubscribed public
offering. We take this opportunity to thank our long-time
supportive investors as well as many new shareholders for this
strong show of support for Global Atomic and the Dasa
Project."
In addition to the development bank, Global Atomic is in
discussions with parties regarding potential joint venture
investment in the Dasa Project and other financing solutions.
The extension of the expiry date of common share purchase
warrants issued pursuant to our March
2023 financing from September 17,
2024, to December 31, 2024, as
announced on September 13, 2024, has
been approved by the TSX.
SITE UPDATE – PROESSING PLANT
Earthworks and civil engineering are progressing in preparation
for the installation of plant equipment, components of which are
now arriving at site.
SITE UPDATE – MINING
The Main Fresh Air Raise is now complete, and the Return Air
Raise is currently underway. Once the fans have been
installed, this significant expansion to the underground
ventilation system will allow mining activity to advance beyond the
first level development and maintain a safe working
environment.
SITE UPDATE – HOUSING
Earthworks and civil engineering are well advanced with
construction of a 400-person facility expected to be completed
early Q1 2025.
TURKISH ZINC JOINT VENTURE
Zinc prices have continued to rise in recent months, positively
impacting cash flow and the Company's share of returns from this
operation. Due to the favorable availability of Electric Arc
Furnace Dust ("EAFD") from local steel mills in Iskenderun,
Türkiye, the processing plant is expected to run at a full capacity
during Q4 2024.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
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