TORONTO, Oct. 2, 2023
/CNW/ - Global Atomic Corporation ("Global Atomic" or the
"Company"), (TSX: GLO) (OTCQX: GLATF) (Frankfurt: G12) is pleased
to announce that it has finalized a Letter of Intent ("LOI") for
the sale of uranium from the Company's Dasa Project in the Republic
of Niger. This is the third
such agreement signed by the Company and brings our current
contracted volume close to 1.5 million pounds
U3O8 per annum over Dasa's initial five years
of operation.
HIGHLIGHTS
- The LOI represents the supply of up to 3.5 million pounds
U3O8 within a multi-year delivery window
beginning in 2026, representing about 14% of Dasa's annual adjusted
Phase 1 production over the period. The total offtake now
contracted is approximately 30% of Dasa's initial five-year
scheduled production.
- In light of the considerable improvement in market conditions,
the pricing formula applied in this agreement captures firming
fundamentals.
- The revenue potential of this award at current prices, valued
at approximately US$250 million in
nominal terms, reflects the Company's continued strategy of
establishing sales contracts in support of Tier 1 global utilities
at volumes sufficient to underwrite debt financing, thereby
limiting equity dilution as the Dasa operation moves into
production.
- Under this agreement, Global Atomic is pleased to provide a
fuel solution for defined North American utility demand, at a time
of increasing supply uncertainty.
- The award is subject to the successful conclusion of a
purchase-sale contract, which the Company will now progress.
Global Atomic President and CEO, Stephen
G. Roman commented, "This award adds to the two off-take
arrangements we announced in 2022, both of which have been
successfully converted into purchase-sale contracts. The
timing of this agreement demonstrates the credibility that Dasa is
building within the uranium market while the Company manages its
project development amid recent political restructuring in
Niger. We were heartened to see the tremendous support of the
Dasa Project recently demonstrated at the 2023 WNA Conference in
London which is resulting in more
offtake discussions currently underway."
"Nuclear power is vital to satisfy the drive for energy
independence across the globe and the overwhelming desire for
low-carbon base load power."
"Our Dasa Operation has a long-life expectancy, with the
current 12-year Phase 1 Plan representing approximately 20% of the
known deposit. The revision to the Phase 1 Feasibility Study
due in the first half of 2024 is expected to double Dasa's mineable
Reserves and extend Phase 1 significantly."
About Global Atomic
Global Atomic Corporation (https://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, 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 Atomic's
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", "targets", "expects",
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", "does not
anticipate", or "believes" or variations of such words and
phrases or statements that certain actions, events or results
"could", "would", "might", "will be taken", "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
