Global Atomic Timeline 2023 - Dasa Uranium Project Advances to Production

About Global Atomic

Global Atomic Corp is a publicly traded uranium development and zinc production company. Its flagship asset is the large, high-grade Dasa uranium project in Niger, Africa, which is fully permitted and undergoing early-works construction for planned commercial production in 2025 to meet rising nuclear energy demand. Dasa was discovered through exploration in 2010 and boasts a multi-decade re0source with phase 1 production estimated at over 40 million pounds of Yellowcake (U₃O_8.

The company holds a 49% stake in the Befesa Silvermet zinc joint venture in Turkey producing and selling high-grade zinc concentrate from recycling electric arc furnace steel dust, generating an attractive dividend stream for Global Atomic. After facing some challenges in 2023, Global Atomic has resumed key development activities at Dasa to capitalize on a strengthening uranium market. Led by President, CEO and Chairman Stephen G. Roman, Global Atomic represents an intriguing speculation on an emerging uranium producer with upside in the nuclear fuel cycle.

What Happened in 2023?

December

$50 Million ATM Equity Program

A new at-the-market (ATM) equity program is initiated by Global Atomic 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 Niger. The company filed a preliminary feasibility study for Dasa in 2021, estimating production could start as soon as 2025.

The ATM program will provide additional funding options as Global Atomic looks to cover its share of developing Dasa in joint venture with Niger. The Dasa project was estimated to have capital costs of $208 million, with Global Atomic funding the mine development and half the infrastructure costs. The ATM facility provides additional contingency and flexibility that could re-rate Global Atomic's stock higher.

Private Placement with Regent Mercantile Holdings

Global Atomic announced a non-brokered private placement of C$15 million for gross proceeds, with 6,000,000 units at C$2.50 per unit. The company entered into a binding subscription agreement with Regent Mercantile Holdings for the subscription of 2,000,000 units and to assist in arranging for the placement of the remaining 4,000,000 units.

Proceeds would be used for continued development of Global Atomic's Dasa Project in Niger, working capital and general corporate purposes. Global Atomic welcomed Regent Mercantile and its founder Stephen Dattels as shareholders as their investment was expected to bring benefits to Global Atomic through Dattels' proven success developing projects and Regent's high-level US business contacts.

Global Atomics Closed C$15 Million Private Placement

Previously announced non-brokered private placement was successfully closed at targeted 6,000,000 units at C$2.50 per unit for gross proceeds of C$15 million. The offering was oversubscribed and no commissions or fees were payable.

The strategic investment coincided with recognition of Niger's interim government by the UN and Germany, resuming military assistance and progress on democratic elections and sanctions relief. An updated feasibility study is expected to extend Dasa's mine life and reserves, which is to be released in Q1 2024.

Advancing Dasa Project Towards 2025 Production

Operations at Dasa resumed in December after a brief suspension following Niger's mid-2023 coup. Targeted production start is on Q4 2025 at an initial rate of 4.5 million pounds per year.  Supply lines and borders reopened in subsequent months, enabling underground development and preparation work to resume. 2024 will involve advancing tunnels, establishing ventilation infrastructure, and starting early earthworks.

Ongoing drilling aimed to continue expanding the scale of the mine. The expected updated mining plan in Q1 2024 should increase overall reserves and mine life, boosting already attractive economics. With uranium prices elevated on positive supply/demand views, Global Atomic looked well positioned to capture substantial upside bringing Dasa into production on schedule.

November

Q3 2023 Results, Updates on Uranium & Zinc Assets

Global Atomic reported having $23.5 million cash as of September 2023. Key objectives included completing engineering and procurement contracts, updating Dasa's feasibility study and mine plan, and targeting uranium plant commissioning by end of 2025.

The uranium business was impacted by political unrest in Niger, border closures and delays in project financing. Underground development at Dasa was paused but plans were to resume soon as Global Atomic signed new offtake agreements totaling 8 million pounds of uranium through 2026, providing revenue visibility.

The company's Turkish zinc plant also resumed Q3 operations after earthquake temporary closure earlier in 2023 and it is expected to return to profitability in 2024 as costs normalize after supply chain disruptions.

October

Third Offtake Agreement for Dasa Uranium Project

Global Atomic finalized a letter of intent (LOI) with a uranium utility to supply up to 3.5 million pounds of U3O8 annually beginning in 2026 when Dasa is scheduled to start production. This marked the third supply agreement signed for Dasa's initial production phase. Together with two prior deals, Global Atomic has now locked in buyers for around 30% of Dasa's first five years of output.

Global Atomic now has over $500 million in potential deal value representing collateral for project financing. The deals reflect widening supply/demand deficits in the uranium market, lack of new mines coming online, and utilities seeking more long-term contracted supply to ensure fuel security.

Global Atomic Thrives Amid Niger Political Uncertainty 

Dasa project has full Niger government support and requires no immediate financing. Global Atomic has contingency financing plans focused on securing non-dilutive funding for Dasa. The company also has sufficient cash for the next 12 months without additional funding. Once democratic elections are restored in Niger, the project should rapidly proceed.

Despite the coup, Global Atomic had contingency plans and sufficient liquidity to maintain momentum at Dasa. Once the political situation stabilizes, Dasa should rapidly advance towards 2025 production.

Financing and Development for Dasa Project Advancement

The political situation in Niger slowed financing and development of Global Atomic's Dasa uranium project, but mining operations continued. Despite the coup d'état in Niger in July 2023, Global Atomic remained focused on moving the Dasa Project forward as the company was approached by many groups interested in financing Dasa through vehicles like off-take agreements, joint ventures, prepayments, and trading houses.

September

Progressing Despite Political Uncertainty in Niger‍

Niger underwent political changes and was governed by a transitional military government. Despite short-term disruptions, Global Atomic maintained strong government relations and was positioned to rapidly resume mining once issues were resolved. Negotiations were underway between military leaders, the US, France, Algeria and others for Niger to return to democratic rule within 6-12 months.

While final resolution would take months, Global Atomic continued value-adding work at Dasa, including infrastructure upgrades and engineering and project financing remained on track to cover Phase 1 capital costs.

Global Atomic Named in the TSX Top 30

Global Atomic ranked within the 30 top-performing stocks on the Toronto Stock Exchange over 3 years. Being named to the TSX30 highlighted Global Atomic's standout performance relative to Canadian peers and could help raise its profile among investors.

Global Atomic was poised to benefit from several trends driving uranium market growth, including rising demand, dwindling supplies, and renewed interest in nuclear power. With a solid financial position and Dasa permits in hand, Global Atomic positioned itself well to benefit from a pending uranium bull market.

August

Q2 2023 Financial and Operational Updates

During Q2 2023, Global Atomic made strong progress advancing its Dasa uranium project in Niger. HIghlights include:

• Over 600 meters of underground ramp was completed to access high grade ore
• Detailed plant engineering neared completion, with key long lead time equipment ordered
• Definitive supply agreement with a second major utility for up to 2.1 million pounds of uranium annually beginning in 2025
• Maintained a C$35 million cash position to fund ongoing work.

Global Atomic's 49% stake in the Befesa Silvermet Türkiye zinc recycling joint venture provides diversification and cash flow. The plant was expected to return to profitability by Q4 2023 on resumed production, recovering zinc pricing, and easing cost inflation.

July‍

Niger Situation Update‍

Global Atomic announced that development of its Dasa Project continues to advance on schedule and has not been affected by activities in Niger. Global Atomic was in touch with teams in the capital and at the Dasa site, who reported all is calm and it is business as usual.

Global Atomic is advancing the Dasa Uranium Project, which was fully permitted for commercial production with the issuance of the Dasa Mining Permit and an Environmental Compliance Certificate by the Republic of Niger. Its Phase 1 Feasibility Study estimates yellowcake delivery to commence in 2025.

June‍

Dasa Project Update‍

Significant progress continues at Dasa, with over 200 people now on site including experienced uranium miners and young apprentices. The decline ramp neared the top of the ore body with about 500 meters completed. Surface and underground infrastructure installation was underway. Detailed engineering for the processing plant neared completion, with orders placed for critical long-lead items like the acid plant, crusher and SAG mill. Equipment costs were consistent with feasibility study estimates.

Despite financing delays, Global Atomic remains on schedule to produce yellowcake for delivery to utilities in early 2025. Operations continue advancing underground and on surface to support that timeline, with an experienced team now assembled.

May

Second Offtake Agreement for Dasa Uranium Project

Global Atomic signed a definitive agreement with a major North American utility to supply up to 2.1 million pounds of uranium from the Dasa Project. This represents about 7% of Dasa's annual production over the delivery window starting in 2025. The deal has a revenue potential valued in excess of $110 million in real terms. These agreements provide confirmation to banks, shareholders, and the Niger government that Global Atomic has an established, guaranteed revenue stream from Dasa. The company is actively discussing additional offtake agreements this quarter with the intent of signing sufficient volume to cover Dasa’s production costs.

By formalizing over $250 million in potential revenue, Global Atomic continued derisking project financing while positioning to potentially sign further deals ahead of 2025 targeted production start.‍

Q1 2023 Results

With a cash balance of $52 million at quarter end with equity financing of $56 million raised in gross proceeds, Global Atomic announced Q1 2023 results and provided an update on its Dasa uranium project and Turkish zinc joint venture operations. Highlights included:

• Feasibility study outlining a 12-year Phase 1 production schedule of 1,000 tonnes per day to produce 44.1 million pounds U₃O₈
• Second definitive supply agreement was signed with a North American for their procurement of up to 2.1 million pounds of Dasa uranium annually beginning 2025
• Turkish zinc plant was temporarily suspended operations after earthquakes in February 2023, reopening in early March.
• Due to the shutdown plus lower zinc prices, the company's share of joint venture EBITDA was a $0.4 million loss versus a $3.4 million gain in Q1 2022.

Looking forward, Dasa financing was nearing completion, with a term sheet expected in Q2 2023 and final approval in Q3. The decline tunnel was on track to reach the ore zone in Q4 2023.

Funded to Continue Uranium Development

The Dasa uranium project was introduced at The Hague and received positive nuclear industry feedback and getting put on utilities' bidder lists. Global Atomic had $60 million cash on hand for funding, with bank financing still in process but terms expected by end of Q2 2023. Global Atomic spent $30-40 million on Dasa so far, with another $60 million getting them close to full equity requirements.

Alternative non-dilutive equity financing plans were also explored for raising an additional $25-50 million required for Dasa's construction phase. African uranium supply was in demand by utilities for future reactor projects coming online and Global Atomic aimed to profitably operate and layer in contracts. Despite some industry cost inflation, Global Atomic continued advancing Dasa towards and targets to starting up Africa's largest uranium deposit in 2025 amid these positive tailwinds.

Dasa Project Resource Estimate and Updates

An updated Mineral Resource Estimate (MRE) for Global Atomic’s Dasa uranium project in Niger was calculated by AMC Consultants incorporating extensive new drill, probe and assay data. The 16,000-meter infill drill program focused on upgrading inferred resources to indicated status that allows inclusion in mine planning and reserves.

The MRE increased Dasa's indicated resources tonnage at varying grades depending on the cut-off grade applied. Using a 1,500 ppm uranium cut-off, indicated resources grew 50%. This demonstrated excellent conversion from inferred resources. Additional inferred resources were also outlined with high grades for further drilling targets.

March‍

Upsizing Public Offering to C$50 Million

Global Atomic Corporation upsized its previously announced bought deal public offering from C$25.0 million to C$50.0 million due to significant demand. The underwriter, Red Cloud Securities Inc., had agreed to purchase for resale 16,666,667 units of Global Atomic at a price of C$3.00 per unit. Global Atomic intended to use the net proceeds to fund a portion of the capital costs to advance its Dasa Project in Niger to commercial production and for general working capital purposes. The offering was scheduled to close around March 17, 2023. Closing was subject to customary closing conditions including regulatory approvals.

Closing of Bought Deal Public Offering to C$56 Million

The bought deal prospectus offering was closed for gross proceeds of C$56,002,501, which included exercise of the over-allotment option for proceeds of C$6,002,500. The offering was upsized from its original C$25.0 million size due to significant demand. Under the offering, the company sold 18,666,667 units and 250,000 common share purchase warrants at C$3.00 per unit and C$0.01 per warrant to the underwriter, Red Cloud Securities Inc.

As consideration for services, the underwriter received a 5% cash fee and underwriter warrants exercisable at C$3.00 per share until September 17, 2024. 

Global Atomic Portfolio Updates

Global Atomic provided updates on operations at its Turkish zinc recycling joint venture and Dasa uranium project in Niger.

The zinc plant in Iskenderun, Türkiye had restarted production following the earthquakes earlier in 2023.

At Dasa, all assays from the 2022 16,000-meter drill program were completed at the lab in Vancouver, with the database ready for final review before transmission to AMC Consultants for an updated mineral resource estimate. Around 200 meters of underground ramp development had been completed, along with re-muck and safety bays. A total of 800 meters would be developed before the ramp hits development ore, expected in late 2023. Engineering was progressing on first earthworks to begin in Q2, with long-lead items like the crusher to be ordered by end of March. 

The company's two businesses position it as an environmentally progressive company in mining, with the zinc plant supporting the circular economy and Dasa developing uranium to generate clean electricity.

2022 Operating and Financial Results

Global Atomic announced operating and financial results for the year ended December 2022. Highlights included:

• Advancing the Dasa uranium project in Niger with site infrastructure, ramp development and processing plant engineering underway to support 2025 production
• Deal financing raised $56 million
• Revised the Dasa feasibility study primarily to apply zero grade to inferred resources, resulting in a 12-year Phase 1 plan to produce 44.1 million pounds U₃O₈
• Company’s share of EBITDA was $4.2 million in 2022 on sales of 35.2 million pounds from Turkish zinc JV plant production . 
• Safety inspections enabled the Turkish plant to resume operations in March 2023 following earthquake damage. 

The company's cash balance at December 31, 2022 was $8.4 million. For 2023, Global Atomic eyed completion of Dasa financing and off-take agreements in Q2 2023, revised mineral resource estimate, basic engineering and long lead equipment orders.

February

Turkey Plant Update After 7.8 Magnitude Earthquake

Following the major earthquake in Turkey, Global Atomic provided updates its zinc recycling joint venture operation where joint venture employees were contacted and found to be physically unharmed. The plant itself appeared to have received only minor damage. At the time of the earthquake, the plant was already under a scheduled maintenance shutdown. As communications and power were restored to the region, a more thorough assessment of any earthquake impacts would be conducted. While the impact of the earthquake in the surrounding region was extensive, Global Atomic’s plant was a new build in 2019 and is constructed to modern earthquake-resistant standards. The company stated to provide further updates as more information became known about damage and restoration of operations.

Final Prospectus for $100 Million Offering

Global Atomic filed a final short form prospectus for its previously announced overnight marketed public offering of 28,571,430 units at C$3.50 per unit for gross proceeds of C$100 million. Each unit comprised one common share and one half warrant exercisable at C$4.40 per share for 3 years. The underwriters, led by Red Cloud Securities and including Cormark Securities, were granted a 30-day over-allotment option for up to an additional 15% of units.

Global Atomic intended to use the net proceeds to fund a portion of the capital costs to advance its Dasa uranium project in Niger to commercial production and for general working capital.

Working Together with the Government of Niger

Niger had issued several orders against Global Atomic’s Niger mining subsidiary, SOMIDA where one order required SOMIDA to cease operations under the Adrar Emoles 4 exploration permit held by Global Atomic's subsidiary Global Atomic Fuels Corporation.Although the orders are issued to SOMIDA, the orders requiring the cessation of operations are in respect of AE4, not Adrar Emoles 3 where the Dasa mining project is located. As such, Global Atomic believes the orders would not impact Dasa development. Global Atomic considered the matter opportunistic and principally directed at the Niger government, and would work together on an appeal. ‍

Gross Proceed of CAD$100M, Building New Plant‍

An underwriting agreement between Global Atomic, Red Cloud Securities and Cormark Securities was initiated for the sale of about 28 million units at CAD$3.50 per unit, bringing total gross proceeds to CAD$100 million. The offering then was oversubscribed. The company had originally planned a 60/40 debt/equity raise of $50-60 million but increased the size due to market demand. 

The funds would finance the Dasa uranium project in Niger, where site infrastructure and ramp development was underway to support 2025 production. The company was on schedule to complete the plant by end 2024. The company anticipated announcing the debt component by end of Q1 2023 and planned further discussions with utilities once project financing was in place.

Order Appeal Granted and Public Offering Update

Global Atomic Corporation announced that an appeal was heard regarding the orders granted against its Niger subsidiary SOMIDA S.A.

Global Atomic also announced that it had agreed to terminate the previously announced underwritten public offering, the termination resulted from an assessment that current market conditions due to the uncertainty surrounding the proceedings involving SOMIDA in Niger were not conducive for completing an offering on terms favorable for shareholders.

Following the outcome of the appeal, the company re-assessed financing options. It also noted that the debt component of the Dasa Project Financing continues to progress with further news expected by the end of Q1 2023.

Appeals Court Overturns and Annuls All Issues Against SOMIDA

The Appeals Court in Tahoua, Niger had overturned and annulled all issues raised against SOMIDA. It was stated that the Dasa Project is of major importance to Niger's economy therefore the hearing was treated as a special case and resulted in an expedited ruling.

Global Atomic noted that SOMIDA did not cease underground development of the Dasa Mine due to the court proceedings and remains on its development schedule. This allowed development work at the Dasa Mine to continue per Global Atomic's schedule and move forward with its business plans in Niger.

January

‍Dasa’s Phase 1 Feasibility Study and 2023 Outlook

Several key objectives for advancing project towards production in 2023 were targeted by Global Atomic, including advancing underground development, updating the mineral resource estimate, finalizing project financing, beginning civil works and plant construction, ore extraction, signing a deal to ship ore to Orano's Somaïr plant, signing more offtake agreements, and continuing exploration.

Global Atomic stated that the banking syndicate was nearing completion of due diligence for project financing, which was now expected by end of Q1 2023. The company also signed a new definitive supply agreement with a major Western utility for up to 2.4 million pounds of uranium to be delivered starting in 2025, valued at $140 million.

Additionally, Global Atomic refiled the Dasa feasibility study to clarify disclosure related to inferred resources in the mine plan, at the request of the Ontario Securities Commission. This resulted in minor changes to some economic parameters updated in its 2021 Phase 1 Feasibility Study for the uranium project in Niger.

Proposed Public Offering Announced for Dasa Advancement

A preliminary short form prospectus for an overnight marketed public offering of units was filed by Global Atomic where each unit was to consist of one common share and one half of one common share purchase warrant. The offering was expected to be completed pursuant to an underwriting agreement with Red Cloud Securities as lead underwriter. Global Atomic intended to use the net proceeds to partially fund development of its Dasa Project uranium mine in Niger, including advancing exploration and development and for general working capital.

Pricing of C$100 Million Public Offering of Units

Global Atomic entered an underwriting agreement with Red Cloud Securities and Cormark Securities for the sale of 28,571,430 units at $3.50 per unit for gross proceeds of $100 million. Each unit consisted of one common share and one half of a 36-month common share purchase warrant exercisable at $4.40 per share. The underwriters also had a 30-day over-allotment option for more units. The success of this public offering of units will raise funds to advance its Dasa project.