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Global Atomic (TSX: GLO) has arranged a non-brokered private placement of 6 million units priced at C$2.50 each for gross proceeds of C$15 million ($11.25m). Regent Mercantile Holdings has agreed to take 2 million units, and it will assist in the placement of the remaining 4 million units or will subscribe to any units that remain unsold at closing.
Each unit is comprised of one common share of Global Atomic and one-half of one share purchase warrant, exercisable at C$3.00 per share. The warrants will expire 12 months following the closing date (Dec. 29, 2023), subject to accelerated expiry if the 10-day TSX volume-weighted average price exceeds C$3.50 per share for a period of five consecutive trading days.
“We are pleased to welcome Stephen Dattels and Regent Mercantile as shareholders of Global Atomic. They bring a broad knowledge of the uranium industry in addition to an impressive group of investors to participate in the Investment,“ said Global Atomic president and CEO Stephen Roman, adding that this investment will facilitate the restart of operations at the Dasa uranium project.
“The company will also benefit from Regent’s high-level business contacts in the United States through their ownership position in Traxys Group, who are highly regarded in the uranium and commodities business,” he added.
“Having US and international shareholders of this calibre strengthens Global Atomic’s position with its bankers and provides further assurance to the Niger government that the Dasa project will advance to produce uranium on schedule.”
Based on the sensitivity analysis provided in Global Atomic’s 2021 Phase 1 feasibility study, at recent spot prices for uranium oxide (U3O8) of $80/lb, the Dasa project is expected to generate an internal rate of return of 79.2% and an after-tax net present value with an 8% discount of $1.07 billion.
Following a 16,000-metre in-fill and expansion drill program at Dasa, Global Atomic issued the 2023 resource estimate of 10.1 million indicated tonnes grading 4,913 ppm U3O8 and 4.5 million inferred tonnes grading 5,243 ppm.
An updated feasibility study and mine plan, which is expected to extend the life of the current Phase 1 mine and increase Dasa’s mineable reserves, is due in the first quarter of 2024.
