TORONTO, June 15,
2022 /CNW/ - Global Atomic Corporation ("Global
Atomic" or the "Company") is pleased to advise that it has received
a Letter of Intent for the procurement of uranium from a major
North American utility. The award follows a comprehensive due
diligence process conducted by the utility, and reflects the
confidence the fuel buyers have in the Dasa operation.
HIGHLIGHTS
- The award defines the supply of 2.1 million pounds
U3O8 over a six-year period commencing in
2025, representing approximately 7 percent of Dasa's production
over the period.
- Pricing is designed with two components to provide a blend of
predictability and market exposure. The market component is linked
to the uranium spot price index, subject to a floor and ceiling.
The floor price ensures that the all-in sustaining costs of the
Dasa operation are comfortably covered, and the ceiling allows the
Company to benefit from the improving market environment.
- This award, with revenue potential valued at over US$110 million in real terms, is consistent with
the Company's strategy of establishing sales contracts with Tier 1
global utilities, at volumes sufficient to underwrite debt
financing, thereby limiting equity dilution as the Dasa operation
moves into production.
- 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 is a significant milestone for
Global Atomic and the Dasa operation. We are cognizant that
contract awards for greenfield uranium projects are not made every
day, and this is among the first in this market cycle. It reflects
the faith the fuel buyers have in our project and the team, and we
look forward to fostering this important relationship over the
decades to come. Despite market volatility, the need for low
carbon nuclear power remains undiminished, as does the need for
secure fuel supply. This news follows the recent LOI ("Letter
of Interest") from Export Development Canada for up to $75 million as the cornerstone to our project
financing. These recent milestones continue to build the
foundations for Global Atomic as a new, emerging Uranium
producer."
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 production to commence by the
end of 2024. Mine excavation began in Q1 2022.
Global Atomics' 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")
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,
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