Global Atomic Announces Closing of Bought Deal Public Offering for Gross Proceeds of C$56.0 Million
NEWS RELEASE
Global Atomic Announces Closing of Bought Deal Public Offering
for Gross Proceeds of C$56.0 Million
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
Toronto, ON, March 17, 2023: Global Atomic Corporation (“Global Atomic” or the “Company”)
(TSX: GLO, FRANKFURT: G12) today announced the closing of its previously announced
“bought deal” prospectus offering (the “Offering”) for gross proceeds of C$56,002,501, which
includes exercise of the over -allotment option (the “Over -Allotment Option”) for proceeds of
C$6,002,500. Due to significant demand, the Offering was upsized from its original gross
proceeds of C$25.0 million. Red Cloud Securities Inc. (the “Underwriter”) acted as sole
underwriter and bookrunner under the Offering.
Under the Offering, the Company sold 18,666,667 units (the “Units”) and 250,000 Common Share
purchase warrants (the “Warrants”) of the Company, including a total of 2,000,000 Units and
250,000 Warrants pursuant t o the Over -Allotment Option, at a price of C$3.00 per Unit and
C$0.01 per Warrant. Each Unit consists of one common share of the Company (each, a “Common
Share”) and one-half of one Warrant. Each Warrant will be exercisable for one Common Share
(each, a “W arrant Share”) at a price of C$4.00 per Warrant Share at any time on or before
September 17, 2024.
The Company intends to use the net proceeds raised from the Offering to fund a portion of the
capital costs required to advance the Company’s Dasa Project in the Republic of Niger towards
commercial production and for general working capital purposes. Please refer to the Company’s
press release dated January 9, 2023 that outlines its plans for the Dasa Project in 2023.
The Offering remains subject to the final approval of the Toronto Stock Exchange.
The final short form prospectus (the “Prospectus”) has been filed with the securities regulatory
authorities in the provinces of Alberta, British Columbia, Manitoba, Ontario and Saskatchewan in
relation to the Offering. Investors should read the Prospectus and other documents that the
Company has filed for more complete information about the Company and the Offering. A copy
of these documents is available on SEDAR at www.sedar.com.
As consideration for their s ervices in connection with the Offering, the Underwriter received
consideration comprised of (i) a cash fee equal to 5% of the gross proceeds of the Offering and
(ii) Underwriter broker warrants (the “Underwriter’s Warrants”) to purchase up to 3% of the number
of Units sold in the Offering. Each Underwriter's Warrant will entitle the holder thereof to purchase
one Common Share at an exercise price of C$3.00 at any time on or before September 17, 2024.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in the United States. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state
securities laws and may not be offered or sold to or for the account or benefit of persons in the
“United States” or “U.S. persons” (as such terms are defined in Regulation S under the U.S.
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Securities Act) unless registered under the U.S. Securities Act and applicable stat e securities
laws or an exemption from such registration is available.
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
delivery to utilities to commence in 2025. Mine excavation began in Q1 2022.
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 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) 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.
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]
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 proposed financings; Global Atomics’ development potential
and timetable of its operations, development and exploration assets; Global Atomics’ ability to raise additional funds on satisfactory
terms to the Company; the future price of uranium; the estimation of mineral reserves and resources; the completion and timing of the
MRE; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future
production, development and exploration; impacts of third -parties and Government policies on the Company’s operations; 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
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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 resul ts 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.