This news release constitutes a "designated
news release" for the purposes of the Company's prospectus
supplement dated December 5, 2023 to
its short form base shelf prospectus dated November 21, 2023
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Oct. 7, 2024
/CNW/ - Global Atomic Corporation ("Global Atomic" or the
"Company") (TSX: GLO) (FRANKFURT: G12) today announced
that it intends to offer and sell units of the Company (the
"Units") in an overnight marketed public offering (the
"Offering"). The Offering is expected to be completed
pursuant to an underwriting agreement to be entered into between
the Company and Red Cloud Securities Inc., as lead underwriter and
sole bookrunner on behalf of a syndicate of underwriters (the
"Underwriters"). The Offering is subject to market
conditions, and there can be no assurance as to whether or when the
Offering may be completed, or as to the actual size or terms of the
Offering.
Each Unit will consist of one common share of the Company (each,
a "Common Share") and either a full or half of one Common
Share purchase warrant (each whole warrant, a "Warrant").
Each Warrant will be exercisable to acquire one Common Share. Final
pricing of the Units, the exercise price and term of the Warrants
and the determination of the number of Units to be sold and gross
proceeds of the Offering will be determined in the context of the
market.
The Company intends to grant the Underwriters an option,
exercisable in whole or in part, at the sole discretion of the
Underwriters, at any time for a period of 30 days from and
including the closing of the Offering, to purchase from the Company
up to an additional 15% of the Units sold under the Offering, on
the same terms and conditions of the Offering to cover
over-allotments, if any, and for market stabilization purposes. The
over-allotment option may be exercised by the Underwriters to
acquire Units, Common Shares and/or Warrants.
The Offering will be made by way of a prospectus supplement (the
"Prospectus Supplement") to the short form base shelf
prospectus of the Company dated November 21,
2023 (the "Base Shelf Prospectus") in all of the
provinces and territories of Canada, except for Québec.
The Company intends to use the net proceeds raised from the
Offering for development of its Dasa Project located in
Niger and for working capital and
general corporate purposes.
The Offering is scheduled to close on or around October 16, 2024, or such other date as the
Company and the Underwriters may agree. Closing of the Offering is
subject to customary closing conditions, including, but not limited
to, the filing of the Prospectus Supplement, the execution of an
underwriting agreement and the receipt of all necessary regulatory
approvals, including the approval of the securities regulatory
authorities and the Toronto Stock Exchange. The Prospectus
Supplement (together with the related Base Shelf Prospectus) will
be made available on SEDAR+ at www.sedarplus.ca.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities
Act"), or any state securities laws, and may not be offered or
sold to or for the account or benefit of persons in the "United States" or "U.S. persons" (as such
terms are defined in Regulation S under the U.S. Securities Act)
unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is
available.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
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
