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TORONTO, Feb. 14,
2023 /CNW/ - Global Atomic Corporation ("Global
Atomic" or the "Company") (TSX: GLO) (FRANKFURT: G12)
announced today that it has received notice that a local court in
Agadez, Niger issued several
orders against one of the Company's subsidiaries in Niger, Société Minere de DASA S.A. avec CA
("SOMIDA"), in response to demands from certain local
organizations. SOMIDA is a joint venture between the Company and
the Republic of the Niger with the
Company owning an 80% interest and the government a 20%
interest.
The court issued several orders. One order requires SOMIDA to
cease all operations under the Adrar Emoles 4 ("AE4")
exploration permit, which is held by the Company's subsidiary,
Global Atomic Fuels Corporation. However, Global Atomic Fuels
Corporation is not named in the orders. The AE4 permit covers
Global Atomic's Isakanen deposit that is currently undergoing
exploration and initial tests for In Situ Recovery (ISR) of uranium
and not considered a material property of the Company.
The remaining orders relate to the publication of the 2020
Environmental and Social Impact Assessment on the Company's Dasa
Project (the "ESIA"). The ESIA was filed, subject to
public review in accordance with all applicable legal requirements
in Niger and approved by the
Government of Niger.
Although the orders are issued to SOMIDA, the current orders
requiring the cessation of operations are in respect of AE4, not
Adrar Emoles 3, which is where the Dasa mining project is located.
As such, management of the Company does not believe that these
specific orders will impact the Company's ability to develop of the
Dasa mining project, its material mineral property.
The Company is currently in discussions with its legal counsel
in Niger and anticipates that the
judge will issue his reasons for the orders in the next several
days, after which the Company, together with the Government of
Niger, intend to file an
appeal.
The organizations that sought the orders have been active
locally in Agadez in seeking changes from the government in a
number of areas ranging from how the government uses royalty
revenue it receives to the price of onions.
Global Atomic views this matter as being opportunistic and
principally directed at the Government of Niger. Based on the
advice of local counsel, Global Atomic considers the matter to be
without merit and will work with the Government of Niger to appeal the orders.
The closing date of the previously announced short form
prospectus offering of the Company has been postponed. A further
press release of the Company will be issued once a new closing date
is confirmed.
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 includes four deposits with the
flagship project being the large, high-grade Dasa Project,
discovered in 2010 by Global Atomic geologists through grassroots
field exploration. With the issuance of the Dasa Mining
Permit and an Environmental Compliance Certificate by the Republic
of Niger, the Dasa Project is
fully permitted for commercial production. The Phase 1
Feasibility Study for Dasa was filed in December 2021 and estimates yellowcake delivery
to utilities to commence in 2025. Mine excavation began in Q1
2022.
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 production plant, located in Iskenderun, Turkey. 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 the interpretation of the court orders, the legal effect
of the orders, the issuance of reasons for the orders and the
timing thereof, the impact of the orders on the operations of the
Global Atomic, the prospects for appealing the orders and the
expected participation of the Government of Niger in the appeal process, and the closing
of the short form prospectus offering. Generally,
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "believe", "is
expected", "estimates", "scheduled" and 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 outcomes,
events or impacts to be materially different from those expressed
or implied by such forward-looking statements, including but not
limited to the correctness of the legal advice received and Global
Atomic's assessment of the legal impact of the orders, the success
of the an appeal of the orders, applications for to amend the
existing orders or for additional orders may be the brought against
Global Atomic and its operations, the Government of Niger may decide not to participate in the
appeal process and 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 outcomes, events or
impacts 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 outcomes
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
