TORONTO, Dec. 17, 2024 /CNW/ - Global Atomic Corporation ("Global Atomic" or the "Company"), (TSX: GLO) (OTCQX: GLATF) (FRANKFURT: G12) is pleased to provide a year-end update. 2024 has been a year of significant progress in the face of significant challenges. Global Atomic has continued pre-production development at the high-grade Dasa Uranium Mine in the Republic of Niger and is targeting Q1 2026 for first production.
Global Atomic Corporation (CNW Group/Global Atomic Corporation)
The geopolitical situation in Niger continues to improve as the Government moves forward with its reform agenda and provides its full and proactive support for SOMIDA, the Company's Niger operating subsidiary, and its operations at the Dasa Mine. See highlights below:
Government of Niger Committee to facilitate the efficient launch of the Dasa Mine
Pursuant to the Letter of Support from the President of Niger received by SOMIDA in August (see News Release dated August 19, 2024), a Government Committee was formed consisting of representatives from all government Ministries that will interact with SOMIDA management on the development of the Dasa Mine to facilitate efficient decisions relating to operations, logistics and tax matters. During Global Atomic's management visit to Niger in November, three successful meetings were held with the Committee and progress was made on all fronts to facilitate ongoing operations at the Dasa Mine.
Items under discussion with the Committee included administrative issues and available logistic options since the Benin border remains closed. The Government, through a recent initiative launched by Prime Minister Zeine, is moving forward with Algeria to re-open that important trade route to the Mediterranean through the Port of Algiers. This positive development has the potential to accelerate movement of goods on the excellent highway infrastructure that reaches the Niger border close to Arlit 100 kms north of the Dasa Mine and provides a third means of supplying the Dasa Project's requirements.
If successful, the Company will then have access to three viable shipping routes until the Benin border re-opens: Togo and Burkina Faso; Nigeria; and Algeria. Although no official timelines have been announced there are indications that Niger's border with Benin could re-open as early as January 2025.
The executive team and the Company's Managing Director for Niger, Moussa Souley, had additional key meetings in Niamey with Prime Minister Zeine, Mines Minister Abarchi and the U.S. Ambassador to the Republic of Niger, Kathleen FitzGibbon, all of whom provided positive support for Global Atomic and the Dasa Project.
Project Financing
The U.S. development bank (the "Bank") with whom Global Atomic has been working towards approval of a project finance debt facility has confirmed it is moving forward with the approval process. Due to the recent U.S. Presidential election, timelines have moved to Q1, 2025 as certain administrative changes will take place post inauguration.
Joint Venture
In parallel with the Bank discussions, Global Atomic has progressed negotiations on a potential joint venture. Negotiations are well advanced, such that the Company anticipates receipt of a Definitive Agreement in Q1 2025. The investment amount under discussion is sufficient to complete the Dasa Project to production.
Financing
The Company anticipates the project finance scenarios will be finalized on the timelines indicated above which will provide clarity to the Company and its shareholders as to the size, timing and type of any incremental financing to fund operations for the period between signing an Agreement and drawdown of capital. This funding has been discussed with the Company's Investment Bankers and could take the form of a short term "Bridge Facility", a uranium "Pre-Payment" or a final equity placement.
Mine Development
The Company's 2025 Mine Plan is to develop the initial 5 mining levels and begin stoping in Q4 2025. 50,000 tonnes of ore will be available by the end of 2025 for processing in the Dasa Plant once cold commissioning is completed in Q1 2026. Development waste that includes low- and medium-grade ore is currently being hauled to surface as the ramp progresses to the second mining level in the Flank Zone area. In addition, the two main ventilation raises have been completed and fans installed to provide the necessary ventilation as mining progresses.
Mill Development
The Acid Plant, constructed in India, is now arriving at the Dasa Project site, and will be the first significant component of the Processing Plant to be erected once the civil works are completed. Site preparation is well advanced utilizing local contractors who are engaged in earthworks, housing development and civil works.
Camp Construction
The Company is currently completing housing and related infrastructure for 300 people to provide modern accommodations for the expanded workforce on site during Mill construction and production. With over 500 employees and contractors currently working on rotation and much of the plant equipment either completed or being fabricated, the Dasa Project is on track for commissioning in Q1 2026.
President's Message
Global Atomic President and CEO, Stephen G. Roman stated, "The Company's long-standing presence in Niger and adherence to agreements signed with the Government have provided Global Atomic and SOMIDA with a strong foundation on which to build important relationships since 2005. Dasa has complied with the Niger Mining Code and the Government's expectations for advancing the Project after the granting of the Dasa Mining Permit. As a Company, we strive to utilize local talent, which in Niger, with its long history of Uranium mining, there is an abundance. Currently, from top management to the mining team and contractors, 98% of the team are local people. The fact that we are a fully staffed operation is a key operational advantage for Global Atomic."
"Dasa is the most advanced greenfield uranium project in the world and the most immediate option in Niger to provide new prosperity for the Agadez Region. Dasa will also provide meaningful tax revenue and foreign exchange earnings as it is currently the largest new mining project in the Country."
Zinc Operations – Türkiye
Operations at the zinc re-cycling plant in Türkiye continue to perform well as strong inventories of electric arc furnace dust ("EAFD"), higher zinc prices and a return to steady steel plant operating volumes are poised to deliver a profitable year for 2024 and strong operations through 2025.
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.
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.
