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. |
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
Key Contacts: Stephen G. Roman, Chairman, President and CEO, Tel: +1 (416) 368-3949, Email: [email protected]; Bob Tait, VP Investor Relations, Tel: +1 (416) 558-3858, Email: [email protected]
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