Global Atomic - Financing Options, Government Support in Advancing the Dasa Uranium Project

• Global Atomic is advancing multiple financing options for the Dasa Uranium Project
• A US$295 million debt financing facility led by the U.S. development bank is nearing approval
• Niger government shows strong support for the Dasa Project
• Global Atomic's underground development and site preparation are progressing well while maintaining focus on logistics and project timeline.

About Global Atomic

Global Atomic Corporation (TSX:GLO) is a unique player in the mining sector, offering investors exposure to both uranium mine development and cash-flowing zinc concentrate production. The company's primary focus is the development of the fully permitted, large-scale, high-grade Dasa Uranium Deposit in Niger. Discovered by Global Atomic geologists in 2010, the Dasa Project is on track for processing plant commissioning in Q1 2026. Additionally, the company holds a 49% interest in a modern zinc recycling plant in Turkey, providing a steady cash flow stream.

Financing Progress & Government Support Boost Dasa Project

Global Atomic Corporation has released an encouraging update on the financing and development of its flagship Dasa Uranium Project in Niger. The company is making significant strides in securing funding, advancing underground development, and maintaining strong government relations. These positive developments signal a promising outlook for both the project and potential investors.

Multiple Financing Options Under Consideration

Global Atomic is actively exploring multiple financing avenues to complete the project funding for Dasa, demonstrating financial flexibility and a commitment to optimizing its capital structure. The company is advancing a US$295 million debt financing facility led by a U.S. development bank, with documentation being finalized for submission to the bank's Credit Committee in mid-July 2024, followed by potential Board approval in September. Additionally, the company has received interest in pre-payments for future uranium deliveries, which could provide upfront capital while securing sales.

Strategic equity investments from financial institutions and private equity firms are also under consideration, potentially bringing in valuable partners. Global Atomic is evaluating offers for minority joint venture investments at the project level, which could introduce additional expertise and capital while maintaining majority control. Traditional equity financing options, presented by investment banks, remain part of the overall strategy.

CEO Stephen G. Roman has expressed enthusiasm about the potential partnership with the U.S. development bank, highlighting that the Dasa Project aligns with U.S. government priorities to secure uranium supply and reduce dependence on Russian sources, potentially benefiting both the project's advancement and its geopolitical significance.

Government Support & Positive Engagement

A recent site visit by Global Atomic executives, including CEO Stephen G. Roman, CFO Rein Lehari, and Chief Technology Officer Dr. Santiago Faucher, yielded positive outcomes in terms of government relations and project progress. Key highlights include:

1. Meeting with Niger's Mines Minister: The executives met with Commissaire Colonel Ousmane Abarchi, who confirmed his support for the Dasa Project. The minister offered assistance in streamlining administrative processes and facilitating the timely importation of supplies and equipment.
2. SOMIDA Board appointment: A new Board chairman, Mr. Abdourazakou Abdou Moumouni, representing the office of the President of Niger, was appointed to the SOMIDA Board of Directors. Mr. Moumouni's experience as a mining engineer, having worked at Orano Mining's Cominak and Somair mines, brings valuable expertise to the project.
3. Government praise for progress: During a site visit in early May, the Mines Minister praised SOMIDA's progress to date, further solidifying the government's support for the project.

This strong government backing is crucial for the project's success, as it can help mitigate political risks and facilitate smoother operations in Niger.

Project Development & Site Progress

A recent site visit by Global Atomic executives, including CEO Stephen G. Roman, CFO Rein Lehari, and Chief Technology Officer Dr. Santiago Faucher, yielded positive outcomes in terms of government relations and project progress. The executives met with Niger's Mines Minister, Commissaire Colonel Ousmane Abarchi, who confirmed his support for the Dasa Project. The minister offered assistance in streamlining administrative processes and facilitating the timely importation of supplies and equipment.

In a significant development, a new Board chairman, Mr. Abdourazakou Abdou Moumouni, representing the office of the President of Niger, was appointed to the SOMIDA Board of Directors. Mr. Moumouni's experience as a mining engineer, having worked at Orano Mining's Cominak and Somair mines, brings valuable expertise to the project.

During a site visit in early May, the Mines Minister praised SOMIDA's progress to date, further solidifying the government's support for the project. This strong government backing is crucial for the project's success, as it can help mitigate political risks and facilitate smoother operations in Niger.

Logistics Challenges & Mitigation Strategies

While the project is progressing well overall, logistics remain a key area of focus. The closure of the Benin border has prevented access to the port of Cotonou, traditionally the closest and most used ocean port for Niger. To address this challenge, the company is successfully using other ports, although these extended routes can sometimes lead to delays.

The Mines Minister has offered to help expedite inbound shipments, which is critical for maintaining the project timeline. This government assistance is expected to play a crucial role in overcoming logistical hurdles.

Management is prioritizing the proactive planning of material importation to ensure the project remains on schedule. This strategic approach to logistics management demonstrates the company's commitment to meeting project deadlines despite external challenges.

Financial Position & Investment Outlook

Global Atomic has already invested approximately US$90 million of the required equity portion for the Dasa Project financing. With the potential US$295 million debt financing facility set to provide 60% of the project funding and cover 50% of any cost overruns, the company appears well-positioned to complete the project financing.

The debt financing facility's progress towards approval in Q3 2024 is a significant milestone for investors to watch. This facility would provide a substantial portion of the required funding and demonstrate confidence from a major U.S. financial institution.

Uranium Market Dynamics & Global Atomic's Position

The global push for clean energy sources has renewed interest in nuclear power, driving increased demand for uranium. Global Atomic's Dasa Project is well-positioned to capitalize on this trend. The Dasa Deposit's size and grade make it an attractive asset in the uranium market, while Niger's established history of uranium production and the project's geopolitical significance to Western nations could provide advantages in securing offtake agreements and political support.

With plant commissioning scheduled for Q1 2026, Global Atomic could be bringing new production online at a time when many analysts predict a supply deficit in the uranium market. This timeline advantage could allow the company to meet growing demand and potentially benefit from favorable market conditions.

Furthermore, the company has identified three additional uranium deposits in Niger, providing future growth opportunities beyond the initial Dasa Project. These exploration prospects underscore Global Atomic's potential for long-term expansion in the uranium sector.

Diversification Through Zinc Recycling Operations

While the Dasa Uranium Project is the primary focus for Global Atomic, investors should also consider the company's 49% interest in the Befesa Silvermet Turkey (BST) Joint Venture:

1. Cash flow generation: The zinc recycling plant in Turkey provides a source of ongoing cash flow, helping to support the company's operations and development activities.
2. Market leadership: Global Atomic's joint venture partner, Befesa, is a market leader in EAFD recycling, controlling approximately 50% of the European market.
3. Diversification benefit: The zinc recycling operation provides some diversification to Global Atomic's portfolio, potentially helping to mitigate risks associated with being solely focused on uranium.

Environmental, Social, & Governance (ESG) Considerations

While the Dasa Uranium Project is the primary focus for Global Atomic, investors should also consider the company's 49% interest in the Befesa Silvermet Turkey (BST) Joint Venture. This zinc recycling plant in Turkey provides a source of ongoing cash flow, helping to support the company's operations and development activities.

Global Atomic's joint venture partner, Befesa, is a market leader in EAFD recycling, controlling approximately 50% of the European market. This partnership brings valuable expertise and market presence to the joint venture.

The zinc recycling operation provides some diversification to Global Atomic's portfolio, potentially helping to mitigate risks associated with being solely focused on uranium. This additional business segment offers a degree of financial stability and risk management for the company.

Conclusion: A Compelling Opportunity for Uranium Investors

Global Atomic Corporation presents a compelling investment opportunity for those looking to gain exposure to the uranium sector. The company's flagship Dasa Project is progressing well, with multiple financing options being pursued and strong government support in Niger. The project's large size, high grade, and strategic importance position it favorably in the global uranium market.

The company's diversified portfolio, which includes cash-flowing zinc recycling operations, provides some risk mitigation and financial stability. Additionally, Global Atomic's focus on safety, community engagement, and contribution to clean energy aligns well with ESG investment criteria.

While risks exist, particularly related to geopolitics and project development, the potential rewards appear significant. The advancement of the US$295 million debt financing facility and the maintaining of the project timeline are positive indicators for investors.

As the global demand for clean energy continues to grow, and with nuclear power playing an increasingly important role in many countries' energy strategies, Global Atomic is well-positioned to capitalize on these trends. The company's progress in 2024 and 2025 will be crucial, with key milestones including the finalization of project financing and the ongoing development of the Dasa site. For those bullish on the future of nuclear energy and uranium demand, Global Atomic Corporation certainly warrants close attention in the coming months and years.