Global Atomic Signs Construction Agreement for Process Plant Expansion in Turkey
June 22 2018 - 12:55PM
Global Atomic Corporation (“Global Atomic” or the “Company”),
(TSX-V:GLO) is pleased to announce it has signed an Engineering,
Procurement and Construction (“EPC”) contract with Grupo Sarralle,
headquartered in Spain, to complete the expansion of its electric
arc furnace dust (“EAFD”) plant in Iskenderun, Turkey. Costs
for expansion will be funded through forecasted cash flow and lines
of credit available to the Befesa Silvermet Turkey, S.L. (“BST”)
joint venture, of which Global Atomic holds a 49% interest.
Expansion costs are estimated at US$26 million, of which US$24
million is a fixed price EPC contract.
The expansion project will modernize the entire
processing plant, expanding throughput to 110,000 tonnes of EAFD
processing capacity per annum and producing approximately 60
million pounds of zinc in concentrate, attributable to the BST
Joint Venture. At expanded production levels and assuming
current zinc and foreign exchange prices, EBITDA is forecasted to
more than double to C$47.9 million, implying C$23.4 million in
EBITDA for Global Atomic’s 49% interest. Net income
attributable to the Company’s interest in the BST JV is expected to
grow to C$17.2 million.
Stephen G. Roman, Chairman, President and CEO,
commented, “This is a pivotal point for the Company. Within a
year we expect plant expansion and modernization to be completed,
which will double our annual cash flows. Our expectation is
the expansion will be a significant value catalyst going
forward.”
Production and financial projections may change
do to varying underlying assumptions including, but not limited to,
availability of EAFD to process, future price of zinc, currency
exchange rates, ability for equipment or processes to operate as
anticipated, and credit availability.
About Global Atomic
Global Atomic is a TSX Venture listed company
providing a unique combination of high grade uranium development
and cash flowing zinc concentrate production.
The Company’s Uranium Division includes six
exploration permits in the Republic of Niger covering an area of
approximately 750 km2. Uranium mineralization has been
identified on each of the permits, with the most significant
discovery being the DASA deposit situated on the Adrar Emoles III
concession, discovered in 2010 by Global Atomic geologists through
grassroots field exploration.
Global Atomics’ Base Metals Division holds a 49%
interest in BST, which operates a processing facility located in
Iskenderun, Turkey that converts Electric Arc Furnace Dust into a
high-grade zinc oxide concentrate and 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 BST. Befesa is
a market leader in EAFD recycling, capturing approximately 50% of
the European EAFD market with facilities located throughout Europe
and Korea.
Key contacts:
Stephen G. Roman |
George A. Flach, P.Geo. |
Chairman, President & CEO |
Vice
President, Exploration |
Tel: (416)
368-3949 |
Tel: (416)
368-3949 |
Email:
sgr@globalatomiccorp.com |
Email:
gaflach@globalatomiccorp.com |
The information in this release may contain
forward-looking information under applicable securities laws.
Often, but not always, forward-looking statements can be identified
by words such as “pro forma”, “plans”, “expects”, “may”, “should”,
“could”, “will”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates”, “targets”, “believes”, or variations
including negative variations thereof of such words and phrases
that refer to certain actions, events or results that may could,
would, might, or will occur or be taken or achieved.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors which cause the actual plans,
results, performance or achievements of Global Atomic to differ
materially from any future plans, results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, actual
operating cash flows, operating costs, free cash flows, mineral
resources, total cash, transaction costs, salaries, administrative
and other costs of the Company differing materially from those
anticipated; project infrastructure requirements and anticipated
processing methods differing materially from those anticipated;
risks related to partnership or other joint operations; delays in
obtaining governmental approvals or financing or in the completion
of development or construction activities; inability to find
additional sources of capital on favourable terms; dilution due to
future equity financings; fluctuations in zinc and other metal
prices and currency exchange rates; uncertainty relating to
resources; inability to successfully complete new development
projects, planned expansions or other projects within the timelines
anticipated; adverse changes to market, political and general
economic conditions or laws, rules and regulations applicable to
the Company; changes in project parameters; and ability to obtain
sufficient electric arc furnace dust to maintain operations.
Readers are cautioned not to place undue reliance on this
forward-looking information. The
Company does not assume the obligation to revise or update
this forward-looking information after the date of this release or
to revise such information to reflect the occurrence of future
unanticipated events, except as may be required under applicable
securities laws.
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