Global Atomic Announces Financing and Executive Appointment
19 January 2019 - 9:00AM
Global Atomic Corporation (“Global Atomic” or the “Company”),
(TSX-V: GLO, FRANKFURT: G12) announced today it has raised gross
proceeds of $1,256,000 pursuant to the initial closing of a
non-brokered private placement of up to $1,500,000 or 4,687,500
common shares at a price of $0.32 per common share. Final
closing of the private placement is anticipated prior to January
31, 2019.
The common shares are subject to a four month
hold period ending May 19, 2019. A cash finder’s fee equal to 5% of
cash raised and finder’s warrants equal to 5% of common shares
placed was paid pursuant to the closing for a total of $62,800 and
196,250 finders warrants. Finder’s warrants are exercisable
at $0.32 for a period of eighteen (18) months from closing and
subject to a four month hold period ending May 19, 2019.
The current private placement represents a
follow-on to the private placement which closed in November 2018,
under which the Company raised gross proceeds of $8,861,900.
The private placement represents a higher price and increases gross
proceeds raised to $10,117,900 to approximate the $10 million
targeted under the November 2018 private placement.
Proceeds from the current private placement will
be used to fund technical studies and permitting related to
commercial production, exploration at DASA and for general
corporate purposes.
Executive Appointment
Global Atomic is pleased to announce the
appointment of Merlin Marr-Johnson as an Executive Vice President
of the Company. Mr. Marr-Johnson joined the company in
December 2018 as Manager of Technical Services.
About Global Atomic
Global Atomic Corporation is a TSX Venture
listed company providing a unique combination of high grade uranium
development and cash flowing zinc concentrate production.
The Company’s Uranium Division includes six
exploration permits in the Republic of Niger covering an area of
approximately 750 km2. Uranium mineralization has been
identified on each of the permits, with the most significant
discovery being the DASA deposit situated on the Adrar Emoles III
concession, discovered in 2010 by Global Atomic geologists through
grassroots field exploration.
Global Atomics’ Base Metals Division holds a 49%
interest in Befesa Silvermet Turkey, S.L. (“BST”) joint venture,
which operates a processing facility, located in Iskenderun,
Turkey, that converts Electric Arc Furnace Dust (“EAFD”) into 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”, listed on the Frankfurt exchange under
‘BFSA’), holds a 51% interest in and is the operator of the BST
joint venture. Befesa is a market leader in EAFD recycling,
capturing approximately 50% of the European EAFD market with
facilities located throughout Europe and Korea.
BST is well underway with an expansion project
to significantly modernize and expand its processing plant in
Turkey. The expansion is targeted to double annual production
of zinc from 30 million lbs to 60 million lbs and is supported by
EAFD supply currently available for processing in Turkey. The
new plant is scheduled for completion by September 2019.
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Key contacts: |
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Stephen G. Roman |
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Merlin
Marr-Johnson |
Chairman, President
& CEO |
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Executive Vice
President |
Tel: (416)
368-3949 |
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Tel: +44 (0)7803 712
280 |
Email:
sgr@globalatomiccorp.com |
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Email:
mmj@globalatomiccorp.com |
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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 operating,
development and exploration assets; Global Atomic’s ability to
raise additional funds necessary; the future price of uranium; the
estimation of mineral reserves and mineral resources; conclusions
of economic evaluation; the realization of mineral reserve
estimates; the timing and amount of estimated future production,
development and exploration; costs 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" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". All information contained in this news release, other
than statements of current and historical fact, is forward looking
information. Forward-looking statements 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 as of the date such statements
are made. Although management of Global Atomic has attempted to
identify important factors that could cause actual results to
differ materially from those contained in 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 on forward-looking statements. Global Atomic does not
undertake to update any forward-looking statements, except in
accordance with applicable securities laws. Readers should also
review the risks and uncertainties sections of Global Atomic’s
annual and interim MD&As.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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