Global Atomic (TSX-V: GLO) - Financiers Niger Site Visit Shows Intent

Global Atomic Corp. is a Canadian resource company advancing the large, high-grade Dasa uranium deposit in the Republic of Niger. The company benefits from the dividend stream generated by its share in the Befasa Silvermet zinc concentrate production facility in Turkey.

Matt Gordon caught up with Stephen Roman, CEO, Chairman, and President, Global Atomic. Stephen has over 4 decades of experience in successfully identifying, financing, developing, and commencing production at multiple mining and gas projects. He previously served as the Founder, Co-Chairman, and Director at Gold Eagle Mines Ltd. He has also worked as a Policy Advisor to the Canadian Minister of National Defense. In 2016, he received the Bill Dennis Award for Canadian Mineral Discovery from the prestigious PDAC (Prospectors & Developers Association of Canada).

Company Overview

Global Atomic is a mineral exploration company founded in 1994 and is headquartered in Toronto, Canada. The company's flagship asset is the Dasa uranium project in the Republic of Niger, a high-grade, low-cost uranium project with a PEA (Pre-Economic Assessment). The company also produces zinc concentrate from recycled steel dust in Turkey. The company is listed on the Toronto Stock Exchange (TSX-V: GLO), and the OTC markets (OTCQX: GLATF). Global Atomic was among the top 25 companies in the OTC markets in 2020.

The company’s representatives recently attended the Mines and Money conference in London. The company has several meetings lined up, which demonstrates the excitement in the uranium space. Following the conference, the representatives will head back to Niger for a scheduled board meeting. Here, the company will run through next year’s budgets and meet with various officials.

Ongoing Operations

Global Atomic had an opening blast ceremony at the project on November 5th. The company has deployed its entire mining crew on site. All the equipment is in place and the company is currently waiting for additional supplies to come through the port in Agadez. Once the containers arrive on site, the company will start pushing the ramp down to the orebody.

Due to the ongoing supply chain issues, the delivery of the material has taken a bit longer than usual. While, the logistics situation between Cotonou to Agadez has been good, moving large amounts of goods through the Agadez ports has been slower due to custom-related issues.  Global Atomic is one of the most advanced uranium development stories. The company seeks to commence production by the beginning of 2025.

Cash Position

Global Atomic is currently generating revenue through the Befasa Silvermet zinc project in Turkey. Having a secondary source of cash flow also helps with raising additional funds. On the banking side, the company is currently in discussions with 2 North American banks. The company is pushing the lawyers to fast-track the process so that a term sheet can be signed before the end of 2022, which will be shortly followed by announcements. Following this, the company will focus on finishing the paperwork in Q1, 2023.

Notably, the bank’s due diligence teams have already been on site, and the key bank personnel are expected to visit the site in mid-January for a final look. The documentation and paperwork usually take about 3 months to complete.

Global Atomic had $18M in cash flow at the end of Q3, 2022. The funds would take the company through to Q1 next year. Once the banking terms are announced, the company will be able to calculate how much delta is needed to top up from an equity standpoint. The company is also speaking to MES (Management & Economics Society) funds and other groups for a non-dilutive capital raise, however, this depends on the market conditions.

The company does not consider the zinc component of a business as a major asset. It has been a great revenue generator, helping fund the development of the Dasa uranium project. According to the company, the Befasa Silvermet project would have been worth more had it not been for covid-related issues that caused lower steel mill production. Global Atomic is open to the possibility of a potential M&A (Mergers and Acquisitions) for the Befasa Silvermet project in lieu of raising additional equity. However, the company would only be interested in selling if the price is high enough. The company will ascertain the possibility of selling in the first quarter of 2023.

Targets 2022 and Beyond

Global Atomic has completed the hiring process and is currently training the workforce. The company’s Canadian contractor CMAC is already on site along with the required mining gear. Interestingly, the company’s core team comprises employees that have previously worked for Orano Mining. The company has been hiring locally with people down to 18 years of age. It has started apprenticeship and training programs.

The equipment left in the old mine was outdated, and as a result, the company bought state-of-the-art mining equipment as a replacement. Staff training is currently underway and the company has started the mining process.

As the Euro has come down, the company has benefitted from the exchange rates, which, in turn, has lowered operational costs. The company is building the plant from locally-sourced materials to further reduce the overall costs. It anticipates that future targets with plant construction should be as per the schedule.

According to the company, people are used to Areva Orano running the mines, which is a big, state-owned company. It is important to note that Global Atomic is a private Canadian exploration and development company and not a big state enterprise. The company has a budget that it adheres to. It is focused on educating the public about the project, job creation, and a potential spin-out in the future.

To find out more, go to the Global Atomic website