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. 8, 2024
/CNW/ - Global Atomic Corporation ("Global Atomic" or
the "Company") (TSX: GLO) (FRANKFURT: G12) is pleased
to announce that due to significant investor demand, it has entered
into an amended and restated underwriting agreement with Red Cloud
Securities Inc., as lead underwriter and sole bookrunner, and
Canaccord Genuity Corp. (collectively, the "Underwriters")
to increase the size of its previously announced public offering
(the "Offering"). Under the revised Offering, the Company
will sell to the Underwriters for resale 29,167,000 units of the
Company (the "Units") at a price of C$1.20 per Unit for aggregate gross proceeds of
C$35,000,400.
Each Unit will consist of one common share of the Company (each,
a "Common Share") and one Common Share purchase warrant
(each, a "Warrant"). Each Warrant will be exercisable for
one Common Share (each, a "Warrant Share") at a price of
C$1.50 per Warrant Share at any time
for a period of 36 months following the closing of the
Offering.
The Company has granted 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 for resale up to an
additional 4,375,050 Units representing up to 15% of the number of
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"). In the
event the Over-Allotment Option is exercised in full, the aggregate
gross proceeds of the Offering to the Company will be C$40,250,460.
The Offering is being 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 Company and the Underwriters do not anticipate any further
increase to the aggregate gross proceeds under the Offering. 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 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.
Electronic or paper copies of the Base Shelf Prospectus and
Prospectus Supplement may be obtained upon request to the Company
through the contact information below.
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