Global Atomic Closes C$15 Million Private Placement This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement
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NEWS RELEASE
Global Atomic Closes C$15 Million Private Placement
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement
dated December 5, 2023 to its short form base shelf prospectus dated November 21, 2023
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Toronto, ON, December 22, 2023: Global Atomic Corporation (“Global Atomic” or the “Company”) (TSX: GLO;
OTC:QX:GLATF; FRANKFURT: G12) is pleased to announce the closing of its non -brokered private placement (the
“Investment”) announced December 18, 2023. The Investment was oversubscribed and consists of 6,000,000
units of the Company (“ Units”) at a price of C$2.50 per Unit for aggregate gross proceeds of C$15 million. No
commissions or finders fees were payable in connection with the Investment.
Proceeds of the Investment will be used for the continued development of the Company’s Dasa Project in the
Republic of Niger, working capital and general corporate purposes. Global Atomic worked with Regent Mercantile
Holdings Limited (“Regent”) and Stephen R. Dattels on the Investment.
Each Unit is comprised of one common share in the capital of the Company (a “Common Share”) and one half of
one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) exercisable at
C$3.00 per Common Share. Each Warrant will expire 12 months following the closing date of this Investment (the
“Closing Date”) subject to accelerated expiry if the ten-day TSX volume weighted average price (“VWAP”) exceeds
C$3.50 per Common Share for a period of five consecutive trading days.
Stephen G. Roman, President and CEO of Global Atomic noted “The investors including Regent and Mr. Dattels,
bring significant uranium industry, equity markets and commodity trading experience. This strategic investment
coincides with the recognition of the Niger interim government by the UN and Germany as well as the resumption
of German military assistance and construction of a military hospital in Niger. Additionally, ECOWAS has
established a subgroup of member states to engage with the current Niger government on the return of democratic
elections and sanctions relief.”
Based on the sensitivity analysis provided in Global Atomic’s 2021 Phase 1 Feasibility Study, at recent spot prices
for U3O8 of US$80/lb the Dasa Project is expected to generate an IRR of 79.2% and an after-tax NPV @ a discount
rate of 8% of US$1.074 billion. Following a 16,000m in -fill and expansion drill program at Dasa, Global Atomic
issued the 2023 Mineral Resource Estimate featuring a significant increase in indicated resources. In Q1 2024, the
Company plans to issue an updated mine plan and Feasibility Study, which is expected to extend the life of the
current Phase 1 Mine Plan and significantly increase Dasa’s Mineable Reserves.
Qualified Person
The scientific and technical disclosures in this news release have been reviewed and approved by Dmitry Pertel,
MSc., MAIG who is a “qualified persons” under National Instrument 43-101 – Standards of Disclosure for Mineral
Properties.
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This news release shall not constitute an offer to sell or the solicitation of an offer to buy , nor shall there be any
sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful . The Common
Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the
“1933 Act”) and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the
account or benefit of, “U.S. persons” (as defined in Regulation S under the 1933 Act ), except pursuant to an
exemption from the registration requirements of the 1933 Act.
About Regent
Regent is a privately -owned Bermuda-based company which invests in a wide range of asset classes. Regent’s
recent investment has acquired, with other investors, an 18% stake in the Traxys Group, a leading global physical
trader and merchant in metals and n atural resources. Regent and its predecessor companies have financed
numerous mining ventures in diverse commodities including uranium, lithium, nickel, coal, copper, iron ore,
potash and gold.
Regent was founded by Mr. Dattels, a seasoned senior mining executive and resource financier who has been
successful for over 30 years in numerous mining ventures. Regent has a track record of funding and developing
resource projects in developing countries involving the full suite of mineral resources, including oil and gas.
About Global Atomic
Global Atomic Corporation ( https://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, 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.
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) 368-3949
Email: [email protected]
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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 the expected sale of Units under the Investment; the anticipated use of proceeds of the Investment and statements
regarding the anticipated benefits and impacts of the Investment; completion of any financings; Global Atomic’s 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 operation s; and environmental and permitting risks. Generally, forward -looking
statements can be identified by the use of forward -looking terminology such as “plans”, “targets”, “expects”, “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “does not anticipate”, or “believes” or variations of such words and phrases or statements
that certain actions, events or results “could”, “would”, “might”, “will be taken”, “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 mana gement 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 d iffer 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.