TORONTO, Oct. 3, 2024
/CNW/ - Global Atomic Corporation ("Global Atomic" or the
"Company"), (TSX: GLO) (OTCQX: GLATF) (FRANKFURT: G12) is
pleased to provide an update on its Dasa Project in the Republic of
Niger. Dasa is the highest-grade
uranium deposit in Africa
currently under development, only surpassed by grades found in
Canada's Athabasca Basin and is scheduled to achieve
commercial production in early 2026.
PROJECT FINANCING
Debt financing discussions with a U.S. development bank are
progressing with confirmation of the approval schedule expected in
October 2024. The bank continues to voice support of the
project and its intention to approve a debt facility for
US$295 million, which will cover 60%
of the planned project costs. Of the remaining 40% of the
project funding, the Company has already invested approximately
US$120 million.
Global Atomic is also in discussions with parties regarding
potential joint venture investment and other financing
solutions.
The extension of the expiry date of certain common share
purchase warrants from September 17,
2024 to December 31, 2024, was
announced on September 13, 2024. This
extension is expected subject to final TSX approval.
SITE UPDATE – PROCESSING PLANT
The camp at Dasa has been expanding in phases to support the
approximately 450 employees and contractors currently at the site,
as well as the workforce expansion to 900 during the height of
construction next year. A 60-person housing facility is nearing
completion. Earthworks for the next camp phase to house 250 people
are complete, and civils are now underway.
Earthworks for the Acid Plant is nearing completion. The local
earthworks contractor will next move to prepare the site for the
crusher with the SAG mill location to follow.
Processing plant equipment is beginning to arrive at site,
beginning with components of the acid plant that were shipped
through Nigeria. A video was recently posted on the Company's
website
(https://globalatomiccorp.com/Operations/Uranium/Photos-and-Videos/default.aspx)
highlighting the remaining major components of the acid plant
that have been built in India and
are now ready for shipment.
SITE UPDATE – MINING
Mining activities at Dasa are advancing on several
fronts. Having exceeded 1,200 meters of mine
development, our Niger team, which
operates under the SOMIDA company banner, has already brought
10,000 tonnes of development ore to surface and is segregating the
mineralized material into low, medium and high-grade stockpiles,
which will be used for plant commissioning at the end of
2025. The ramp to the ore body has been fully paved and
the next phase of underground development is now underway.
To extend the mine development further the ventilation system is
being expanded and the boring of a Main Fresh Air Raise is underway
and now over 90% complete.
The mining team has not had a lost time incident since mining
began 779 days ago. The Dasa workforce is approximately 98%
Nigerien, including both experienced miners from a former
underground mining operation, as well as local unskilled labour who
are going through the Company training and mentorship program.
MINE PLAN UPDATE
The current Mine Plan announced on March
5, 2024, is projected to produce 68.1 million pounds of
Yellowcake over a 23-year period starting in 2026. The Mine Plan is
based on throughput of 1,000 tonnes per day, however, the plant has
been designed to handle up to 1,200 tonnes per day. An updated Mine
Plan with higher production rates is scheduled for completion in Q4
2024.
President and CEO of Global Atomic, Stephen Roman, stated, "We continue to make
excellent progress at the Dasa Project site as we complete site
preparation for civil works to begin and installation of the Acid
Plant as the first major component of the Dasa Processing
Plant."
"Recent high-level inter-government discussions about the
re-opening of the Niger/Benin
border have been positive and we are hopeful for a near-term
resolution. In addition, as the Niger Government is keen on
supporting new projects in the Country, a committee with
representatives from several key government ministries is being
formed to expedite the resolution of any outstanding issues that
may arise relating to mining, finance, transportation and labour
within Niger."
"Meanwhile the uranium market continues to heat up with
higher spot prices this week. The long-term outlook for uranium
demand is accelerating as announcements to expand the number of
nuclear power reactors planned and approved proliferate. In
September, we attended the World Nuclear Association Symposium in
London, which for the first time
was sold out. While there, we held successful update meetings with
numerous utilities from across the globe which resulted in the
initiation of several active contract discussions for Yellowcake
supply from the Dasa Project."
"Two recent announcements illustrate the growth in uranium
demand:
- Microsoft and U.S. utility giant Constellation Energy
have agreed to a long-term deal wherein Microsoft has agreed to
purchase all the power from Constellation's 880MW Three Mile Island
(TMI) reactor over a 20-year period at prices of US$100 per MWh to power Microsoft's data centers.
This deal calls for a restart of TMI Unit 1 by 2028 and an
investment of US$1.6B by
Constellation Energy.
- The COP28 goal of tripling
nuclear energy capacity by 2050, has now garnered funding support
from some of the world's largest financial institutions, which is
expected to accelerate the demand for uranium and the need for
new greenfield projects such as our advanced Dasa Project.
This has significantly improved our options for the final
funding of our project."
Please visit our website www.globalatomiccorp.com for the
latest site development photos and videos.
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 is currently developing the fully
permitted, large, high grade Dasa Deposit, discovered in 2010 by
Global Atomic geologists through grassroots field exploration. The
"First Blast Ceremony" occurred on November
5, 2022, and commissioning of the processing plant is
scheduled for Q1, 2026. Global Atomic has also identified 3
additional uranium deposits in Niger that will be advanced with further
assessment work.
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 recycling 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 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