Global Atomic Raises $9.19 Million in Private Placement
November 16 2018 - 5:30PM
Global Atomic Corporation (“Global Atomic” or the “Company”),
(TSX-V: GLO, FRANKFURT: G12) is pleased announce it has raised
gross proceeds of $9,191,900 pursuant to the initial closing of a
non-brokered private placement of up to $10,000,000 or 33,333,333
shares priced at $0.30 per share. The Company retained
Arlington Group Asset Management Limited in London, UK, as its lead
capital finder pursuant to the financing. Final closing is
scheduled for November 30, 2018.
President and CEO, Stephen G. Roman, commented,
“The capital raising is a significant endorsement for Global Atomic
from UK and North American institutional investors. Proceeds
from the financing will accelerate development of the high grade
DASA Uranium Project, where management is targeting to deliver
mineralized material to Orano Mining (formerly AREVA SA) by
2020. This timing also coincides with completion of the
modernization and expansion of our zinc operations in Turkey by
September 2019 and cash flow from these operations will support
further development at DASA and other growth initiatives.”
Mr. Roman added “The placement also allows the
Company to expand the next drill program on strike and down dip of
current mineralization. Drilling completed in 2018 identified
several new areas that may substantially impact the size of the
deposit.”
Finder’s fees payable under the private
placement consist of a cash payment equal to 6% of cash raised and
common share purchase warrants equal to 6% of the number of shares
issued in connection with certain orders for a total of $467,414
and 1,491,380 warrants. Finder’s warrants are exercisable at
$0.30 for a period of eighteen (18) months from closing.
Proceeds from the financing will be used to fund
technical studies and permitting related to commercial production,
exploration at DASA and for general corporate purposes.
About Global AtomicGlobal
Atomic Corporation 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 Befesa Silvermet Turkey, S.L. (“BST”) joint venture,
which operates a processing facility, located in Iskenderun,
Turkey, that converts Electric Arc Furnace Dust (“EAFD”) into 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”, listed on the Frankfurt exchange under
‘BFSA’), holds a 51% interest in and is the operator of the BST
joint venture. Befesa is a market leader in EAFD recycling,
capturing approximately 50% of the European EAFD market with
facilities located throughout Europe and Korea.
BST is well underway with an expansion project
to significantly modernize and expand its processing plant in
Turkey. The expansion is targeted to double annual production
of zinc from 30 million lbs to 60 million lbs and is supported by
EAFD supply currently available for processing in Turkey. The
new plant is scheduled for completion by September 2019.
Key
contacts: |
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Stephen G. Roman |
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George A. Flach,
P.Geo. |
Chairman, President
& CEO |
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Vice President,
Exploration |
Tel: (416)
368-3949 |
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Tel: (416)
368-3949 |
Email:
sgr@globalatomiccorp.com |
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Email:
gaflach@globalatomiccorp.com |
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
Atomic’s development potential and timetable of its operating,
development and exploration assets; Global Atomic’s ability to
raise additional funds necessary; the future price of uranium; the
estimation of mineral reserves and mineral resources; conclusions
of economic evaluation; the realization of mineral reserve
estimates; the timing and amount of estimated future production,
development and exploration; costs 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" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". All information contained in this news release, other
than statements of current and historical fact, is forward looking
information. Forward-looking statements 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 as of the date such statements
are made. Although management of Global Atomic has attempted to
identify important factors that could cause actual results to
differ materially from those contained in 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 on forward-looking statements. Global Atomic does not
undertake to update any forward-looking statements, except in
accordance with applicable securities laws. Readers should also
review the risks and uncertainties sections of Global Atomic’s
annual and interim MD&As.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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