Dasa Uranium Project Fully Permitted and On
Schedule for Development and Financing
TORONTO, May 10, 2022
/CNW/ - Global Atomic Corporation ("Global Atomic" or the
"Company"), (TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) announced
today its operating and financial results for the three months
ended March 31, 2022.
HIGHLIGHTS
Dasa Uranium Project
- In Q4 2021, the Company began a 15,000-meter drill program at
the Dasa Project with three objectives:
-
- Conduct infill drilling to upgrade some of the extensive
Inferred Resources to Indicated Resources so that they may be
included in a revised Mine
Plan.
- Connect Mining Zones 2, 2a and 2b
to Zone 3 to form one continuous expanded zone instead of four
separate zones.
- Expand the total resources in the area of Zones 2 and 3.
- Drilling to the end of Q1 2022 succeeded in significantly
expanding and upgrading the mineral resources in the area of Zones
2 and 3.
- Drill results subsequent to Q1 2022 indicate that Zones 2, 2a
and 2b now represent a contiguous
zone with Zone 3 which is estimated to be approximately three times
larger than initially defined.
- The Box-Cut blasting and excavation for the mine began in Q1
2022, were completed subsequent to the end of the quarter and
ground support is underway.
- Site work in preparation for the portal and ramp development
included construction of employee housing, warehouse and
maintenance facilities, surface buildings for mining activities,
power and water servicing of the site.
- The Isakanan drill program on the Adrar Emoles 4 permit was
completed in February, with core sent to Canada for permeability and porosity testing
to determine in-situ leach potential.
Turkish Zinc Joint Venture
- The Turkish Zinc Joint Venture ("BST" or the "Turkish JV")
plant had a 3-week maintenance shutdown in Q1 2022 (none in Q1
2021) resulting in 19,785 tonnes EAFD processed in Q1 2022 (24,407
tonnes in Q1 2021).
- The Company's share of the Turkish JV EBITDA was $3.4 million in Q1 2022 ($4.2 million in Q1 2021).
- The zinc contained in concentrate shipments in Q1 2022 was 8.3
million pounds (14.8 million pounds in Q1 2021) and the average
zinc price was US$1.70/lb in Q1 2022
($1.25/lb in Q1 2021).
- The amount outstanding under the non-recourse Befesa 2019 plant
expansion loan was US$2.65 million at
the end of Q1 2022 (Global Atomic share – US$1.3 million), a reduction of US$2.0 million from the year end.
- The revolving credit facility of the Turkish JV remained at
US$7.8 million at the end of Q1
2022.
- The cash balance of the Turkish JV was US$4.3 million at the end of Q1 2022.
Corporate
- Global Atomic continues to receive management fees and sales
commissions monthly from the Turkish JV ($423,000 in Q1 2022 compared to $444,000 for Q1 2021).
- Cash balance at March 31, 2022,
was $24.3 million.
Stephen G. Roman, President and
CEO commented, "This year promises to be one of the most
exciting in Global Atomic's history as we expect to significantly
advance the fully permitted Dasa Project. We recently
received a Letter of Interest from Canada's Export Development Corporation, to
provide up to US$75 million in
project financing. We are currently in discussions with other
lenders with the intention of being fully financed by the end of
2022. At the same time, we continue to move forward
with the Niger Government to form our Niger mining subsidiary, with Orano Mining
regarding the shipment of ore to generate revenue as early as
mid-2023, and with several electric utilities to sign our initial
off-take agreements. The uranium market continues to be strong with
prices significantly higher than our Feasibility Study Base Case of
US$35 per pound, boding well for our
future profitability."
"On the ground in Niger, we
have completed the Box-Cut blasting and excavation and are on
schedule with the installation of surface infrastructure in
anticipation of starting underground development this fall.
As well, the Dasa drilling program that we began in 2021 has been
very successful in identifying additional high-grade mineralization
between known mining Zones, which will be reflected in an updated
Mineral Resource Estimate and revised Mine
Plan later this year."
"Our Turkish Zinc JV is benefitting from higher zinc prices
which will ensure final payment on the Befesa loan and resumption
of annual dividends to the JV Partners. The second quarter promises
to be better yet for our Turkish business as zinc prices have
remained strong and we expect higher throughput in Q2 as no
maintenance shutdowns are expected."
OUTLOOK
Dasa Uranium Project
- The Company expects to finalize the incorporation of its
Niger mining company in Q2
2022.
- In April, Export Development Canada provided the Company a
Letter of Interest for a potential participation, at typical bank
rates for a greenfield mining project finance and subject to normal
due diligence, of up to US$75 million
to form the cornerstone for a banking syndicate on the Dasa project
financing.
- The Company is in discussions with other institutions to
complete the banking syndicate and expects to close its project
financing in Q4 of this year.
- The Company is continuing discussions with Orano Mining
relating to the direct shipment of development ore to the Somaïr
processing facility located 105 kilometers north of the Dasa
Project.
- Discussions with international Electric Utilities continue with
the expectation that initial long-term contracts will be concluded
during 2022.
- Surface infrastructure construction to support mine and mill
development activities continues.
- Mining equipment and supplies have begun to arrive on site and
at the Port of Cotonou in Benin to
support the start of mine development.
- Additional mining equipment and supplies will arrive throughout
Q2 and Q3.
- CMAC-Thyssen ("CMAC"), our contract miner, will begin training
programs in Q3 and start mine development in Q4 2022.
- An EPCM (Engineering, Procurement, and Construction Management)
contract is expected to be awarded in Q2 2022.
- Detailed engineering will be initiated immediately following
the EPCM contract award to support the start of the processing
plant construction in Q1 2023.
- On completion of the Dasa drill program, currently scheduled
for June, and the receipt of assays, the current Mineral Resource
Estimate ("MRE") will be updated.
- Following the MRE update, a revised Mine Plan will be developed, and the reserve
statement updated. It is expected that this will result in an
increase in Phase 1 ore reserves and lower operating costs.
Turkish Zinc Joint Venture
- The Turkish zinc plant continues to operate at target operating
efficiencies.
- The zinc price continues to be strong.
- Repayment of the remaining Befesa loan is expected to occur in
Q2 2022.
- Turkish JV dividend payments will resume following repayment of
the Befesa loan.
COMPARATIVE RESULTS
The following table summarizes comparative results of operations
of the Company:
|
Three months ended
March 31,
|
(all amounts in
C$)
|
2022
|
|
2021
|
|
|
|
|
Revenues
|
$
432,116
|
|
$
443,163
|
|
|
|
|
General and
administration
|
3,176,234
|
|
2,011,533
|
Share of equity loss
(earnings)
|
(1,433,337)
|
|
(1,501,090)
|
Other (income)
expense
|
606,711
|
|
(35,000)
|
Finance (income)
expense
|
(29,817)
|
|
4,339
|
Foreign exchange (gain)
loss
|
180,921
|
|
(29,382)
|
Net income
(loss)
|
$
(2,068,596)
|
|
$
(7,237)
|
Other comprehensive
income (loss)
|
$
(2,248,684)
|
|
$
(2,338,426)
|
Comprehensive income
(loss)
|
$
(4,317,280)
|
|
$
(2,345,663)
|
|
|
|
|
Basic and diluted net
loss per share
|
($0.026)
|
|
($0.000)
|
|
|
|
|
Basic and diluted
weighted-average
number of shares outstanding
|
174,878,070
|
|
155,714,695
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
|
|
|
Cash
|
$
24,297,757
|
|
$ 34,179,449
|
Property, plant and
equipment
|
54,465,787
|
|
46,175,097
|
Exploration &
evaluation assets
|
995,145
|
|
681,989
|
Investment in joint
venture
|
9,409,160
|
|
8,981,986
|
Other assets
|
3,645,334
|
|
3,581,512
|
Total
assets
|
$
92,813,183
|
|
$
93,600,033
|
|
|
|
|
Total
liabilities
|
$
4,093,914
|
|
$
2,895,756
|
|
|
|
|
Shareholders' equity
|
$
88,719,269
|
|
$
90,704,277
|
The consolidated financial statements reflect the equity method of
accounting for Global Atomic's interest in the Turkish JV.
Revenues include management fees and sales
commissions received from the joint venture. These are based on
joint venture revenues generated and zinc concentrate tonnes
sold.
General and administration costs at the
corporate level include general office and management expenses,
stock option awards, depreciation, costs related to maintaining a
public listing, professional fees, audit, legal, accounting, tax
and consultants' costs, insurance, travel and other miscellaneous
office expenses. The variance between the years is largely due to
higher stock option grants in Q1 2022 and increased staffing that
took place in Q2 and Q3 2021.
Share of net earnings from joint
venture represents Global Atomic's equity share of net
earnings from the Turkish JV. In view of higher zinc prices in
2021, operating margins more than offset the non-cash expenses,
resulting in a positive equity income of $1.4 million.
Comprehensive Income (loss) represents
unrealized exchange gains (losses) that arise from the translation
of the balance sheets from functional currencies (West African CFA
Franc and Turkish Lira) to the Canadian dollar presentation
currency. For example, the Turkish plant had a cost to construct
that is reported in Turkish Lira, translated at the time the
investment was made. Since then, the Turkish Lira has depreciated
relative to the Canadian dollar, so an unrealized loss occurs on
translation of the same asset at the current date, even though
there has been no change in its economic value. This unrealized
loss on translation of non-monetary balance sheet assets and
liabilities is recorded as comprehensive income (loss).
Uranium Business
Following completion of the Preliminary Economic Assessment of
the Dasa Project in May 2020, the
Company initiated various trade-off studies which were followed up
by a Feasibility Study. The Feasibility Study was reported with an
effective date of November 15, 2021
and the full Feasibility Study was filed on SEDAR on December 30, 2021.
Laboratory test work was undertaken in three independent pilot
plant campaigns with results from each campaign guiding and
directing the subsequent campaign. Variations in quantity and type
of process recovery consumables were used to determine the optimum
recovery of uranium for the most practical equipment selection with
the lowest reasonable consumable cost. The final selection of the
process followed the principles established in uranium operations
in the region which have proven to be successful over the past 50
years.
Mineral Reserves for the Dasa Project were estimated based on
the geology and Mineral Reserve Estimate ("MRE") previously
reported by CSA. An engineering design and costing exercise was
undertaken to a feasibility study level of accuracy which supports
the MRE.
Detailed and preliminary engineering designs were undertaken for
the underground mine workings, mining surface infrastructure,
process plant, tailing storage facility, and support services
infrastructure. These designs enabled detailed pricing enquiries to
be issued to the market in the development of a comprehensive
capital cost and sustaining cost estimate. Manning and consumable
material requirements were developed and costed in the open markets
to establish an expected operating cost over the life of mine of
the operation. Sourcing of electrical power and water was
determined to meet the mine requirements, and these too,
contributed to the operational cost estimate. The capital cost
estimate, sustaining cost estimate and operational cost estimates
for the various elements of the mine and process plant were
combined into an economic analysis of the project to determine a
financial model for the mine.
The Feasibility Study was completed at a detailed level of
design and engineering to enable an appropriate level of confidence
to be applied to the economic viability and outcomes of the
project. As a result of the Feasibility Study, the following
Mineral Reserves were estimated.
Mineral Reserve
Category
|
RoM
(tonnes)
|
U3O8
(ppm)
|
U3O8
(t)
|
U3O8
(Million
lbs)
|
Proven Mineral
Reserve
|
-
|
-
|
-
|
|
Probable Mineral
Reserve
|
4,066,390
|
5,267
|
21,417
|
47.217
|
The Feasibility Study identified five zones of mineral reserves as
shown in the provided schematic.
The mining inventory included in the Feasibility Study included
a minor amount of Inferred Resources shown as follows:
|
RoM
tonnes
|
U3O8 ppm
|
U3O8 (t)
|
U3O8 (Million
lbs)
|
Measured
|
-
|
-
|
-
|
|
Indicated
|
4,066,390
|
5,267
|
21,417
|
47.217
|
Inferred
|
187,236
|
3,375
|
632
|
1.393
|
Total Mining
inventory
|
4,253,626
|
5,184
|
22,050
|
48.611
|
The Zones vary in grades, with Zone 1 (Flank Zone) contributing the
largest portion of the U3O8 tonnes:
Zone
|
In-situ
Tonnes
|
U3O8 ppm
|
RoM
tonnes
|
Rom
U3O8 ppm
|
RoM
U3O8 Tonnes
|
1
|
2,464,615
|
6,980
|
2,316,047
|
6,887
|
15,950
|
2
|
264,339
|
3,621
|
256,078
|
3,574
|
915
|
3
|
656,114
|
3,093
|
633,541
|
3,056
|
1,936
|
4
|
604,673
|
3,003
|
584,616
|
2,966
|
1,734
|
5
|
478,916
|
3,312
|
463,345
|
3,269
|
1,515
|
Total
|
4,468,657
|
5,279
|
4,253,626
|
5,184
|
22,050
|
Reserve Expansion
There are significant Inferred Resources located above Zone 3
and between Zones 2 and 3. In Q4 2021, the Company began an infill
drilling program to convert the Inferred Resources to Indicated
Resources. To date, this drilling program has been very successful
and has identified additional resources in these areas as well. The
drilling campaign will likely be completed at the end of Q2 2022.
Once the assays have been received, the MRE will be updated to
reflect both the additional resources and changes in resource
categorization.
These drill results indicate that Zones 2, 2a and 2b now represent a contiguous zone with Zone 3
which is estimated to be approximately three times larger than
initially defined.
As the next step to compiling these drill results into a new
Mineral Resource Estimate ("MRE") for Dasa, the Company has engaged
Dmitry Pertel of AMC Consultants of
Perth, Australia. Mr. Pertel
completed all the previous work on the Dasa Project while with CSA
Global. The updated MRE results will then be used to develop an
updated Mine Plan and resultant
Reserves update, which are planned for completion in Q4 2022.
With increased Indicated Resources between Zones 2 and 3, such
resources are expected to extend the number of years of mining in
Zones 2 and 3, which will defer the development required to access
Zones 4 and 5. This should improve overall production costs of the
Dasa Project.
Mining Permits and Niger Mining Company
In September 2020, GAFC applied
for the Mining Permit on the Dasa deposit and the Mining Permit was
subsequently awarded on December 23,
2020. The Company also completed its Environmental Impact
Statement and on January 28, 2021
received its Environmental Certificate of Compliance. GAFC now
holds all permits required to construct and mine the Dasa
deposit.
Under Niger's Mining Code, upon
the issuance of a mining permit, the resource must be transferred
to a newly incorporated Niger
mining corporation, which the Company and the Niger Mines Minister
have agreed to name Société Minière de Dasa S.A. avec CA
("SOMIDA"). The Niger government
is granted 10% of the common shares of SOMIDA at no cost on a
carried interest basis and GAFC is entitled to be repaid 100% of
the total costs incurred to that date.
The Republic of Niger also has
the right to elect at the time of its formation to increase its
interest in the common shares of SOMIDA by up to 30% by committing
to fund its proportional share of future debt and equity
requirements. The Government interest in SOMIDA is solely in the
common shares of that entity and entitles it to payments of
dividends on such equity shares.
Discussions are on-going about other aspects of the
incorporation of SOMIDA. On August 19,
2021, the Mines Minister issued a formal letter to the
Company indicating that it would only be participating in the
equity of SOMIDA for the 10% free carried interest.
Notwithstanding, the Mines Minister could change this position up
until the incorporation of SOMIDA.
Dasa Mine Development and Construction
The Company has entered into an agreement with CMAC-Thyssen
International Inc. ("CMAC"), a contract miner based in Val d'Or, Quebec to provide contract mining
services in the development of the Dasa underground mine over the
first 24 months of mining. Following the March 2020 closure of the Cominak underground
uranium mine in Arlit, there is a pool of skilled miners available
to the Company in Niger. CMAC will
be providing training, development and oversight of the
Niger workforce with the new
equipment that will be used at site. Initial mining will comprise
only ramp development during the first 12 months, followed by
access and level. Equipment and mining consumables are being
procured and shipped to site. In view of worldwide supply chain
disruptions, moving materials to site is taking longer than
expected.
The boxcut has been blasted and excavated and ground support
work is underway. Surface infrastructure is under construction and
will continue to be installed throughout the summer. All equipment
and supplies should arrive at site by the end of the summer to be
ready to start the portal and ramp development thereafter. Mine
portal and ramp development is expected to commence in Q4 2022,
once all materials are on site and the mine employees are in
place.
EPCM providers have been short-listed and a final appointment is
expected shortly. Following the appointment of an EPCM provider,
detailed engineering will get underway and surface groundwork
preparation will begin in Q4 of this year followed by remaining
civil work and construction beginning in 2023. The Company's plan
is to commission the processing plant in Q4 2024 so that yellowcake
can be produced at the beginning of 2025.
Project Financing
Global Atomic has received a Letter of Interest ("LOI") from
Export Development Canada ("EDC") confirming their interest in
working with the Company on a project financing of the Dasa
Project. EDC expects to partner with other export credit agencies,
commercial banks and/or financial institutions as co-lenders and to
have a lead role in the structuring of the debt facility. EDC has
indicated a potential participation, at typical bank rates for a
greenfield mining project finance, of up to US$75 million to form the cornerstone of what is
expected to be a syndicate of banks.
Any potential EDC underwriting is subject to acceptable
financing terms and conditions and is also subject to satisfactory
due diligence including the completion of an environmental and
social review pursuant to EDC's Environmental and Social Risk
Management Framework, which includes EDC's Environmental and Social
Review Directive and the Equator Principles.
Discussions are well advanced with other institutions on their
potential participation in the syndicate and should conclude during
Q2. Detailed due diligence and documentation will follow, and the
Company expects to complete the Dasa Project financing arrangements
in Q4 2022.
Turkish Zinc JV EAFD Operations
The Company's Turkish EAFD business operates through a joint
venture with Befesa Zinc S.A.U. ("Befesa"), an industry leading
Spanish company that operates several Waelz kilns throughout
Europe, North America and Asia. On October 27,
2010, Global Atomic and Befesa established a joint venture,
known as Befesa Silvermet Turkey, S.L. ("BST" or the "Turkish JV")
to operate an existing plant and develop the EAFD recycling
business in Turkey. BST is held
51% by Befesa and 49% by Global Atomic. A Shareholders Agreement
governs the relationship between the parties. Under the terms of
the Shareholders Agreement, management fees and sales commissions
are distributed pro rata to Befesa and Global Atomic. Net income
earned each year in Turkey, less
funds needed to fund operations, must be distributed to the
partners annually, following the BST annual meeting, which is
usually held in the second quarter of the following year.
BST owns and operates an EAFD processing plant in Iskenderun,
Turkey. The plant processes EAFD
containing 25% to 30% zinc that is obtained from electric arc steel
mills, and produces a zinc concentrate grading 67% to 70% zinc that
is then sold to zinc smelters.
Global Atomic holds a 49% interest in the Turkish JV and, as
such, the investment is accounted for using the equity basis of
accounting. Under this basis of accounting, the Company's share of
BST's earnings is shown as a single line in its Consolidated
Statements of Income (Loss).
The following table summarizes comparative operational metrics
of the Iskenderun facility.
|
Three months ended
March 31,
|
|
2022
|
|
2021
|
|
100%
|
|
100%
|
|
|
|
|
Exchange rate (C$/TL,
average)
|
11.02
|
|
5.83
|
Exchange rate (US$/C$,
average)
|
1.27
|
|
1.27
|
|
|
|
|
Exchange rate (C$/TL,
period-end)
|
11.75
|
|
6.57
|
Exchange rate (US$/C$,
period-end)
|
1.25
|
|
1.26
|
|
|
|
|
Average zinc price
(US$/lb)
|
1.70
|
|
1.25
|
|
|
|
|
EAFD processed
(DMT)
|
19,785
|
|
24,407
|
|
|
|
|
Production
(DMT)
|
5,695
|
|
8,755
|
Shipments
(DMT)
|
5,589
|
|
9,456
|
|
|
|
|
Shipments (zinc content
'000 lbs)
|
8,183
|
|
14,850
|
In Q1 2022, world steel production decreased by 5.8% over the
comparable 2021 period. The impact by region was mixed. In Q1 2022
compared to Q1 2021: Chinese production decreased 10%; European
Union production decreased 3.8%; North American production
decreased 0.9%, and Turkish production decreased by 4.7%.
In April 2022, the World Steel
Association published its short-term outlook for demand, which
projected 0.4% overall global demand growth in 2022 and a further
growth of 2.2% in 2023. The impact of the Ukrainian conflict on
global steel markets is uncertain, however as exports from
Russia and Ukraine have historically accounted for 10% of
global steel exports, it is likely a material percentage of this
supply will be replaced by increased production in other
countries.
Despite the plant having had a 3-week maintenance shutdown, the
Iskenderun plant processed 19,785 tonnes of EAFD in Q1 2022,
representing 72% of capacity.
The following table summarizes comparative results for Q1 2022
and 2021 of the Turkish JV at 100%.
|
Three months ended
March 31,
|
|
2022
|
|
2021
|
|
100%
|
|
100%
|
Net sales
revenues
|
$
14,348,723
|
|
$
15,798,634
|
Cost of
sales
|
7,416,981
|
|
7,987,519
|
Foreign exchange
gain
|
45,235
|
|
728,375
|
EBITDA(1)
|
$
6,976,977
|
|
$
8,539,490
|
|
|
|
|
Management fees &
sales commissions
|
1,022,164
|
|
905,742
|
Depreciation
|
394,208
|
|
729,357
|
Interest
expense
|
304,057
|
|
280,818
|
Foreign exchange loss
on debt and cash
|
1,441,259
|
|
2,622,994
|
Tax expense
|
890,111
|
|
937,130
|
Net income
|
$
2,925,178
|
|
$
3,063,450
|
Global Atomic's equity
share
|
$
1,433,337
|
|
$
1,501,090
|
|
|
|
|
Global Atomic's share
of EBITDA
|
$
3,418,719
|
|
$
4,184,350
|
(1)
|
EBITDA is a non-IFRS
measure, does not have a standardized meaning prescribed by IFRS
and may not be comparable to similar terms and measures presented
by other issuers. EBITDA comprises earnings before income taxes,
interest expense (income), foreign exchange loss (gain) on debt and
bank, depreciation, management fees, sales commissions, losses
(gains) on sale of property, plant and equipment.
|
Zinc concentrates are sold to smelters in US dollars. Because the
Turkish Lira is the functional currency of the Turkish operations,
sales are converted to Turkish Lira at the date of the sale when
funds are subsequently received. When the Turkish Lira depreciated
in both Q1 2021 and Q1 2022, exchange gains were recognized on
those sales. In calculating EBITDA, these exchange changes related
to the functional and reporting currencies are treated as
operations related (i.e., above the EBITDA subtotal). Sales are
recorded upon receipt at the smelter, which means that recorded
sales in any given month generally represent the concentrate from
EAFD processed in the prior month. Sales for Q1 2022 were produced
in December 2021 through February 2022.
The cash balance of the Turkish JV was US$4.3 million at March
31, 2022.
Total debt was reduced to US$10.45
million in Q1 2022 from US$12.45
million at the end of 2021. The local Turkish revolving
credit facility balance was US$7.8
million at March 31, 2022
(December 31, 2021 - US$7.8 million) and bears interest only at 6.96%.
The Turkish revolving credit facility can be rolled forward. At
March 31, 2022, the Befesa loan
related to the 2019 plant expansion, totaled US$2.65 million (December
31, 2021 – US$4.65 million)
which bears interest at 4.6% with no fixed maturity date (Global
Atomic's share of the Befesa loan was US$1.3
million). The Befesa loan is expected to be paid off in Q2
2022. Once it has been repaid, dividend payments to the Company
will resume.
QP Statement
The scientific and technical disclosures in this news release
have been reviewed and approved by Ronald
S. Halas, P.Eng. and George A.
Flach, P.Geo. who are "qualified persons" under National
Instrument 43-101 – Standards of Disclosure for Mineral
Properties.
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.
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