Global Atomic Announces $50 Million ATM Equity Program

About Global Atomic

Global Atomic Corporation is a publicly traded company providing both high-grade uranium mine development and cash-flowing zinc concentrate production. The company's Uranium Division centers around the large, high-grade Dasa Project, discovered in 2010 by Global Atomic geologists in Niger through early-stage exploration. With key mining permits and environmental approvals secured from the Republic of Niger, the Dasa Project is now fully permitted to commence commercial uranium production. A feasibility study filed in late 2021 estimates the mine will start delivering yellowcake to nuclear utility customers around 2025 once ramped up to full capacity. Site excavation and early construction on supporting infrastructure began in the first quarter of 2022.

On the base metals side, Global Atomic holds a 49% stake in the Befesa Silvermet Turkey joint venture operating a modern zinc production plant located in Turkey. This plant processes electric arc furnace dust to extract and produce high-grade zinc oxide concentrate subsequently sold to zinc smelters globally. Global Atomic's joint venture partner Befesa Zinc holds a 51% majority position and runs day-to-day plant operations. With recycling facilities throughout Europe, Asia and United States, Befesa maintains approximately 50% market share handling electric arc furnace dust, a hazardous waste produced by steel mini-mills. The joint venture pays Global Atomic an attractive dividend stream tied to the zinc price and profits.

$50 Million ATM

Global Atomic Corporation has established a new at-the-market (ATM) equity program allowing the company to raise up to $50 million by issuing new common shares directly to investors over time.

The ATM provides Global Atomic with additional funding flexibility as it continues developing its flagship Dasa uranium project in the Republic of Niger. The company filed a preliminary feasibility study for Dasa in late 2021, estimating production could start as soon as 2025 to supply yellowcake to nuclear power utilities.

An ATM facility enables a company to tap capital markets incrementally by selling newly issued shares into the existing trading market. Instead of raising a fixed amount of capital all at once via a bought-deal financing or prospectus offering, an ATM allows more controlled and minimally dilutive means to access equity funding.

Global Atomic joins a number of its uranium developer peers that have established ATM programs, giving the sector more runway to advance projects towards production amid still recovering uranium prices. Many industry observers believe the uranium market could face widening supply gaps later this decade before meaningful new production comes online.

Dasa Funding Needs

In the press release, Global Atomic President and CEO Stephen Roman indicated the ATM program will provide additional funding options as the company looks to cover its share of developing Dasa in joint venture with the Republic of Niger. The partners continue basic site works and preparing for the start of major construction activities next year.

The Dasa project has a confirmed a reserve for the Dasa Project of 4.1 million tonnes grading 5,267 ppm for a total of 47.2 million pounds U₃O₈. The initial, Phase 1, 12-year mine schedule at a production throughput of 1,000 tonnes per day will produce 44.1 million pounds U₃O₈.

The project carries estimated capital costs of $208 million, with Global Atomic responsible for funding the mine development and half the costs for related infrastructure. The company is also evaluating potential project financing solutions to fund a portion of its costs.

Attractive Zinc Business

Beyond its industry-leading uranium asset, Global Atomic also operates a unique zinc concentrate production business that generates cash flow today. The company holds a 49% stake in a joint venture called Befesa Silvermet Turkey that recovers zinc from steel dust.

This Befesa JV produces over 60 million pounds of zinc annually that is sold to smelters globally. It also pays Global Atomic a dividend stream tied to the zinc price and profits, contributing recurring cash flow as Dasa is built.

Shares of Global Atomic have significantly lagged its uranium developer peer group this year despite the company’s sector-leading uranium grades, low costs, fully permitted status, and cash flowing zinc business. The ATM facility provides additional funding contingency and flexibility that could re-rate the stock higher.

Conclusion

With construction activities set to ramp up next year, Global Atomic offers investors relatively low-risk exposure to both rising uranium and zinc prices this decade. The Dasa project is poised to deliver large-scale production growth just as wider uranium supply-demand balances are projected to tighten.