TORONTO, Oct. 10,
2023 /CNW/ - Global Atomic Corporation ("Global
Atomic" or the "Company"), (TSX: GLO) (OTCQX: GLATF, Frankfurt:G12)
provided an update on the Dasa Project in the Republic of
Niger. The United States of
America, State Department today officially designated that a
"Coup d'Etat" did occur in the Republic in Niger at the end of July 2023. This
designation will put a temporary hold on US Development Bank
financing pending visibility of a return to democratic
elections.
IMPACT ON GLOBAL ATOMIC
- Management has been engaged in contingency planning with
parties interested in non-dilutive financing options at the
operating level from groups interested in buying Yellowcake
- Existing Yellowcake off-take agreements with utilities are
unaffected by today's State Department decision
- The Project remains unimpaired and enjoys full government
support
- No immediate need to finance as the Company has sufficient cash
on hand for the next 12 months
- The Company continues to advance revisions to its mine plan,
which is expected to have significant positive impact on valuation
once demonstrated in the Company's updated Feasibility Study
Global Atomic President and CEO, Stephen
G. Roman commented, "The Government of Niger has confirmed its full support for the
Dasa Project and recognizes it's a new mine that will benefit the
Republic of Niger by creating new
jobs and opportunities for local business and revitalize the
northern region of the country. The Government has offered
its encouragement in the development of Dasa and all support
required to accelerate construction and the start of mining
operations."
Logistics issues regarding importing goods into Niger are being addressed by the Niger
Government which has recently given full approval for the transport
of goods into the Country via ports in Ghana and Togo and overland via Burkina Faso. Internal flights are expected to
be restored shortly.
On the heels of signing its third off-take agreement last week,
the Company has received additional Requests for Proposal ("RFP")
for Yellowcake offtake agreements from Utilities. Similar to the
most recent agreement, the Company is favouring contracts
based on market pricing formulas that capture firming market
fundamentals.
In the meantime, the Company's engineering and mine planning
team are nearing completion of a revised mine plan that will
integrate the recently updated Mineral Resource Estimate ("MRE")
and associated material increase in Measured and Indicated
resources. Detailed engineering and costing are in line with the
2021 Phase 1 Feasibility Study. The above will form the basis
of a revised Feasibility Study to be completed in H1 2024.
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