Global Atomic Corp - GLATF stock
Introduction[edit]
Global Atomic Corporation (TSX: GLO, OTC: GLATF) is a Canadian-based mining and exploration company primarily focused on the production of uranium. The company was founded in 2005 and is headquartered in Toronto, Canada. Global Atomic Corporation is listed on the Toronto Stock Exchange (TSX) under the ticker symbol "GLO" and on the OTCQX market in the United States under the ticker symbol "GLATF."
Operations[edit]
DASA Project[edit]
About DASA[edit]
The primary asset of Global Atomic Corporation is the Dasa Uranium Project, located in the Republic of Niger in West Africa. The Dasa Project is a high-grade uranium deposit and is considered one of the largest undeveloped uranium deposits globally. Global Atomic Corporation holds an 80% interest in the Dasa Project, with the remaining 20% interest owned by the Republic of Niger.[1] The company received a mining permit in 2020 for the project, anticipating a 12 year program that would ultmiately produce 4.4 million pounds U3O8 annually, with all-in sustaining cost of $18.39 per pound and after-tax net present value of $211-million.[2]
The company utilizes conventional open-pit mining methods to extract uranium ore from the Dasa Project. The ore is then processed using a heap leaching technique, which involves the application of a chemical solution to extract the uranium. Global Atomic Corporation aims to become a low-cost uranium producer, targeting both the international and domestic markets for nuclear power generation.[1]
Mineral Resource Estimate[edit]
An updated MRE was prepared by AMC Consultants, based in Perth, Western Australia. It incorporates data from a comprehensive 16,000-meter drill program conducted from September 2021 onwards. The program focused on infill drilling to upgrade Inferred Resources to the higher resource classification of Indicated, which enables their inclusion in an updated Mine Plan and Mineral Reserve. The new MRE also includes geotechnical data obtained from the drill core. The geological model of the Dasa Deposit has shown consistent continuity, and future drilling phases are being planned. The new MRE solely focuses on an Underground Mine Model and does not consider open pit modeling of near-surface mineralization. Global Atomic President and CEO, Stephen Roman stated, "The results of the drill program were successful in significantly increasing Dasa's Indicated Resources, much of which is expected to be upgraded to a Mineable Reserve when included in the planned revision to Dasa's Mine Plan and Updated Feasibility Study."[3]
EAFD Business[edit]
Global Atomic Corporation also has an interest in the Befesa Silvermet Turkey plant, which is a joint venture with Befesa Zinc S.A.U. This plant recycles electric arc furnace dust (EAFD) and produces a zinc concentrate. Global Atomic purchases EAFD from Turkish steel companies to produce zinc concentrates, which are then sold to zinc smelters. The company manages its Turkish EAFD operations through a joint venture with Befesa Zinc S.A.U. The company owns 49% of the JV whereas Befesa, the second partner, owns the remaining 51% of the venture. Currently, it operates a single EAFD facility in Iskenderun, Turkey.[4]
The company's revenue from EAFD operations comes from management fees and sales commissions received from its joint venture company, Turkish Zinc JV. The revenue represents joint sales of zinc concentrates to zinc smelters.[4]
In 2019, the company modernised and expanded the Iskenderun plant. After the expansion, the Iskenderun plant can now process around 110,000 tonnes EAFD per annum, which is an increase of 65,000 tonnes per annum than the previous capacity.[4]
Agreements[edit]
January 2023[edit]
Under the terms of this agreement with a Western utility company, Global Atomic is expected to supply up to 2.4 million pounds of U3O8 (uranium oxide) within a multi-year delivery period commencing in 2025. This supply represents approximately 7% of Dasa Project's annual Phase 1 production throughout the specified timeframe. The awarded contract holds a significant revenue potential for Global Atomic, with an estimated value of USD 140 million in real terms. This accomplishment aligns with the company's strategic approach of securing sales agreements with leading global utilities, ensuring sufficient volumes to support debt financing and minimizing the need for equity dilution as the Dasa operation progresses towards production.[5]
May 2023[edit]
Global Atomic Corporation, also referred to as Global Atomic, entered into a Definitive Agreement with a prominent utility company based in North America in October, 2022. TThe utility company will procure uranium from Global Atomic's Dasa Project. Under the agreement, Global Atomic is set to supply up to 2.1 million pounds of U3O8 (uranium oxide) within a multi-year delivery period that commences in 2025. This represents approximately 7% of Dasa Project's annual production during the specified timeframe. The estimated revenue potential of this agreement exceeds US$110 million in real terms.[6]
Funding[edit]
In December, 2023, a non-brokered private placement was completed, in which 6,000,000 units were sold, generating C$15,000,000. Each unit consists of one share of stock and one-half warrant, with the warrants exercisable at a price of C$3.00 for up to one year. The funds raised will be invested in the Dasa project, as well as general company expenses.[7]
In July, 2024, a private placement was completed in which 14,814,815 units were issued in exchange for proceeds of C$20,000,000. Each unit consists of one share of common stock and an one warrant exercisable at a price of $1.80 with an expiration date of July 31, 2026. The company retains the right to demand all warrants be redeemed if the share price reaches and maintains a certain level.[8]
- ↑ 1.0 1.1 globalatomiccorp.com. Operations - Uranium - DASA Project. Retrieved on 6/13/2023.
- ↑ newsire.ca. Global Atomic Receives Mining Permit for the Dasa Uranium Project. December 23, 2020.
- ↑ newswire.ca. Global Atomic Updates Dasa's Mineral Resource Estimate. May 23, 2023.
- ↑ 4.0 4.1 4.2 globalatomiccorp.com. Operations - Zinc - Befesa Silvermet Turkey. Retrieved on 6/13/2023.
- ↑ Market Screener. Global Atomic Signs Letter of Intent with Western Utility for Uranium Supply. October 25, 2022.
- ↑ Yahoo Finance. Global Atomic Completes a Second Definitive Agreement to Supply Uranium to a Major North American Utility. May 8, 2023.
- ↑ Newsire.ca. Global Atomic Closes C$15 Million Private Placement. December 22, 2023.
- ↑ Canada Newswire. Global Atomic Announces Closing of C$20 Million Private Placement. July 31, 2024.
OTC Symbol: GLATF | OTC Tier: OTCQX International
