Dasa Project excavation of ramp access Box
Cut and surface infrastructure on schedule
TORONTO, Feb. 22,
2022 /CNW/ - Global Atomic Corporation ("Global
Atomic" or the "Company") (TSX: GLO) (OTCQX: GLATF) (FRANKFURT:
G12) is pleased to provide an update on the Dasa Uranium Project
("Dasa") and the drilling programs in the Republic of Niger, its zinc business in Turkey and Corporate activity as of
mid-February 2022.
Highlights:
Dasa Uranium Project
- Project development on schedule
- The Box Cut location has been drilled and blasted, muck removal
underway
- Surface infrastructure construction continues, including
warehouse and maintenance shop facilities
- Camp expansion continues in preparation for mine contractors
and employees
- New mining and surface equipment has been delivered to
site
- Canadian and international ocean freight shipments are en route
to West Africa
- Full site servicing including generators, power and water line
installation in progress
Uranium Drilling Programs: Dasa/Isakanan
- Infill and exploration drilling ongoing at Dasa. Expected
completion date June 30, 2022
- Isakanan deposit, on AE4 Permit, core drilling for In Situ
Leach program ongoing
Turkish Zinc JV
- BST preliminary unaudited results for fiscal year 2021 as
follows:
-
- EBITDA was up 100% over 2020. Global Atomic's share of EBITDA
was CDN$11.2 million
- Average annual zinc price $1.40/lb., up 36% from 2020
- Zinc production 35.5 million pounds, down 8% from 2020
- Repayment of the remaining principal on the Plant
modernization loan has been deferred to Q2 2022 as available
capital was allocated to working capital and raw material
purchases. Global Atomic repayment share is US$2.3 million
Corporate
- Discussions continue with:
-
- International banks regarding Dasa Project processing plant
financing
- Utilities regarding initial offtake agreements
- Orano Mining regarding potential DSO contract for Dasa's
development ore
- OTC:QX Best 50 performance in 2021 and 2020
President & CEO, Stephen
Roman, commented, "The demand for uranium remains bullish
as the world continues to move towards net zero carbon targets.
Nuclear power is now widely recognized as essential to provide
baseload power. Global Atomic is advancing the Dasa Project as
planned with the goal of being an integral part of the uranium
supply chain to fuel the world's reactor fleet. All aspects of the
Dasa Project are going well and activity at site is accelerating at
a remarkable pace."
Dasa Uranium Project
On Saturday, February
19th the Company initiated an intricate,
time-delay blast to begin excavation of the ramp access Box Cut.
Since the beginning of 2022, a local contractor constructed roads
for easy access to the mine portal area and has been preparing the
blast holes for this event. Excavation of the Box Cut will continue
until the end of Q1 2022.
"First Dasa Uranium Project blast" February 19, 2022, Republic of Niger
Several large pieces of equipment for earth moving and
construction have arrived at site. Further equipment deliveries to
the Dasa Project will be arriving in March.
Surface infrastructure is progressing well with the erection of
a warehouse and a maintenance shop adjacent to the mine portal in
addition to surface services including electric power, water and
sewage facilities in preparation for the 100-person camp to house
miners and support staff.
In April 2022, Canadian mining
contractor, CMAC-Thyssen, will collar the portal to the mine and
then commence underground development. In preparation for 24/7
underground development, equipment and materials are being shipped
to site with the first series of containers leaving the Port of
Montreal enroute to the Port of
Cotonou in Benin, West Africa, and overland delivery to the Dasa
Project site.
Uranium Drilling Programs
Following the January 2022
announcement of results from our first 6,000 meters drilled at
Dasa, the Company plans to complete the remaining 9,000 meters of
the program by mid-year 2022. The initial drill holes targeted an
area of Inferred Resources immediately proximal to Zone 3 of the
current Phase I Mine Plan. The drilling was conducted on 25 meter
centers and resulted in a significant addition to Zone 3 resources.
Assays for the entire drill program are expected in Q4 2022, after
which a new resource and mine model will be produced.
Concurrently, Global Atomic is drilling at the nearby Isakanan
deposit, where previous drill programs have delineated a
preliminary, non-NI 43-101 compliant resource of approximately 35
million pounds of U3O8, grading between 800
and 1,000ppm. Isakanan is being considered as a good candidate for
In Situ Leaching "ISL", due to the geology and flat lying nature of
the mineralized sandstone host rock. Drill Cores have been shipped
to Canada to be tested for
Permeability and Porosity which will determine next steps for this
deposit.
Turkish Zinc JV
The Company's zinc business ("BST") had a positive year in 2021
with a 100% increase in Global Atomics' share of EBITDA as compared
with 2020. BST processed marginally more Electric Arc
Furnace Dust ("EAFD") in 2021, but as in 2020, ran at approximately
64% of its capacity of 110,000 tonnes as local steel mills are not
running at full capacity due to Covid and supply chain disruptions.
The increase in EBITDA was attributable to a 36% increase in the
average price of zinc to $1.40 per
pound. As of the date hereof Zinc is trading at approximately
$1.65 per pound. Audited financial
results for BST will be announced in late March, 2022 with the
Corporation's audited financial statements for the year ended
December 31, 2021.
In Q4 2021, as the remaining Befesa loan, which stood at
US$4.65 million (Global Atomic's
share US$2.3 million), the BST Board
decided to use available funds to secure additional raw materials
to ensure adequate supplies of critical materials in case of supply
disruptions due to unforeseen market events. As a result, the
planned final payment on the Befesa loan was deferred to Q2
2022. Dividends will resume to the JV Partners in
April 2023, as originally
planned.
Corporate
With the Company's December 2021
"Bought Deal" capital raise of $35
million, it is anticipated there will be no need for
additional funding until 2023 when process plant construction
commences at Dasa. This will coincide with the procurement of
project debt financing to fund that construction.
In 2021, Global Atomic was once again recognized for being among
the top 50 performing stocks on the OTC:QX under the symbol GLATF,
ranking 11th out of 550 companies listed on that
exchange. In 2020, the Company ranked 24th on the
OTC:QX.
Mr. Roman commented, "With our Phase I Feasibility Study for
Dasa completed at the end of 2021, discussions have accelerated on
several fronts. Discussions with international banks to finance the
construction of the Dasa process plant have entered the due
diligence phase. We expect to receive term sheets in the second
half of the year with the goal of putting financing in place to
fund plant construction in 2023. With the December 2021 capital raise, the exercise of
outstanding common share purchase warrants and cash flow from the
zinc operation, we plan to minimize additional share dilution as we
complete the final project financing package."
"Discussions with utilities also continue.They are now
reviewing Feasibility Study data as part of their due diligence
process. We have participated in the RFP processes with utilities
seeking long-term contracts. The TradeTech and UxC forward price
curves indicate prices will improve going forward which bodes well
for Global Atomic and its planned Q1 2025 Yellowcake delivery start
date."
"Discussions continue with Orano Mining for a Direct Shipping
Option or "DSO" of development ore from Dasa to their Somaïr plant,
which is approximately 100 kilometers north of Dasa in the town of
Arlit, Niger. We believe this
arrangement will generate mutual benefits for both
companies."
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 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 production to commence by the end of 2024.
Mine excavation began in Q1 2022.
Global Atomics' 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, Turkey. 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")
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,
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.
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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.
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The Toronto Stock
Exchange has not reviewed and does not accept responsibility for
the adequacy and accuracy of this news release.
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SOURCE Global Atomic Corporation