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, Dec. 22,
2023 /CNW/ - Global Atomic Corporation ("Global
Atomic" or the "Company") (TSX: GLO); (OTCQX: GLATF); (FRANKFURT:
G12) is pleased to announce the closing of its non-brokered private
placement (the "Investment") announced December 18, 2023. The Investment was
oversubscribed and consists of 6,000,000 units of the Company
("Units") at a price of C$2.50
per Unit for aggregate gross proceeds of C$15 million. No commissions or finders fees were
payable in connection with the Investment.
Proceeds of the Investment will be used for the continued
development of the Company's Dasa Project in the Republic of
Niger, working capital and general
corporate purposes. Global Atomic worked with Regent Mercantile
Holdings Limited ("Regent") and Stephen R. Dattels on the Investment.
Each Unit is comprised of one common share in the capital of the
Company (a "Common Share") and one half of one common share
purchase warrant (each whole common share purchase warrant,
a "Warrant") exercisable at C$3.00 per Common Share. Each Warrant will
expire 12 months following the closing date of this Investment (the
"Closing Date") subject to accelerated expiry if the ten-day
TSX volume weighted average price ("VWAP") exceeds
C$3.50 per Common Share for a period
of five consecutive trading days.
Stephen G. Roman, President and
CEO of Global Atomic noted "The investors including Regent and
Mr. Dattels bring significant uranium industry, equity markets and
commodity trading experience. This strategic investment
coincides with the recognition of the Niger interim government by the UN and
Germany as well as the resumption
of German military assistance and construction of a military
hospital in Niger. Additionally,
ECOWAS has established a subgroup of member states to engage with
the current Niger government on
the return of democratic elections and sanctions
relief."
Based on the sensitivity analysis provided in Global Atomic's
2021 Phase 1 Feasibility Study, at recent spot prices for
U3O8 of US$80/lb the Dasa Project is expected to
generate an IRR of 79.2% and an after-tax NPV @ a discount rate of
8% of US$1.074 billion.
Following a 16,000m in-fill and
expansion drill program at Dasa, Global Atomic issued the 2023
Mineral Resource Estimate featuring a significant increase in
indicated resources. In Q1 2024, the Company plans to issue
an updated mine plan and Feasibility Study, which is expected to
extend the life of the current Phase 1 Mine Plan and significantly
increase Dasa's Mineable Reserves.
Qualified Person
The scientific and technical disclosures in this news release
have been reviewed and approved by Dmitry
Pertel, MSc., MAIG who is a "qualified persons" under
National Instrument 43-101 – Standards of Disclosure for Mineral
Properties.
This news release shall not constitute an
offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of the
securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The Common
Shares have not been, nor will
they be, registered under the United
States Securities Act of 1933, as amended, (the
"1933 Act") and may not be
offered, sold or delivered, directly or
indirectly, in the United
States, or to, or for the
account or benefit of, "U.S.
persons" (as defined in Regulation S under the 1933
Act), except pursuant to an exemption from the
registration requirements of the 1933 Act.
About Regent
Regent is a privately-owned Bermuda-based company which invests in a wide
range of asset classes. Regent's recent investment has acquired,
with other investors, an 18% stake in the Traxys Group, a leading
global physical trader and merchant in metals and natural
resources. Regent and its predecessor companies have financed
numerous mining ventures in diverse commodities including uranium,
lithium, nickel, coal, copper, iron ore, potash and gold.
Regent was founded by Mr. Dattels, a seasoned senior mining
executive and resource financier who has been successful for over
30 years in numerous mining ventures. Regent has a track record of
funding and developing resource projects in developing countries
involving the full suite of mineral resources, including oil and
gas.
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 the expected sale of Units under the Investment; the
anticipated use of proceeds of the Investment and statements
regarding the anticipated benefits and impacts of the Investment;
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