All amounts in Canadian dollars unless specified otherwise
NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION THROUGH U.S. NEWS OR WIRE SERVICES
Gladiator Resources Ltd (ASX: GLA) (Gladiator or the Company) is pleased to provide shareholders with the Company’s Activities and Appendix 5B Report for the quarter ending 31 March 2024.
HIGHLIGHTS
The Company raised $4M at $0.03 per share from a consortium of private investors led by Mr Ian Stalker, with funds to be used toward the Company’s exploration and drilling program at the Mkuju Uranium Project in Tanzania.
Preparations for drilling at the Mkuju Project in southern Tanzania commenced, with drilling expected to commence in May to test the Southwest Corner target and test potential extensions to the Mtonya and Likuyu North deposits.
Samples from shallow reconnaissance pits at Minjingu Project in northern Tanzania returned results of 202ppm and 269ppm U3O8.
URANIUM PROJECTS - TANZANIA
Figure 1. Map showing Gladiators Uranium Projects in Tanzania
MKUJU URANIUM PROJECT
The Prospecting Licenses (PLs) of the Mkuju Project cover 725 km2 as shown in Figure 2 and include two existing uranium deposits and several exploration prospects. The area is 20-30 km south of the Nyota deposit. Nyota hosts a Measured and Indicated Mineral Resource Estimate of 187 Mt at 306 ppm U3O8 containing 124.6 Mlbs U3O8. Nyota is being developed by global uranium company Uranium One. The Nyota deposit and the deposits and prospects on the Mkuju Project are underlain by continental sediments of Triassic aged sediments of the Karoo Supergroup which are considered highly prospective for uranium.
During the quarter no fieldwork was carried out as access to the area is extremely difficult during Tanzania’s wet season which typically lasts from November/December until early May. During the quarter significant progress was made in preparation for an initial 2000m drilling program planned to commence during May, to test the Southwest Corner target and test potential extensions to the Mtonya and Likuyu North deposits, summarised below with further details found in the Company’s recent ASX announcements.
Figure 2: GLA’s uranium deposits and target trends within the Mkuju Project
Click here for the full ASX Release
This article includes content from Gladiator Resources , licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
All amounts in Canadian dollars unless specified otherwise
NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION THROUGH U.S. NEWS OR WIRE SERVICES
Cameco (TSX: CCO; NYSE: CCJ) announced today that it has priced a private placement of senior unsecured debentures (the "Offering") consisting of $500 million principal amount of 4.94% Senior Unsecured Debentures, Series I maturing on May 24, 2031 (the "Series I Debentures"). The closing of the Offering is expected to take place on May 24, 2024.
Cameco intends to use the net proceeds of the Offering to retire all of its outstanding 4.19% Senior Unsecured Debentures, Series G at or prior to the maturity date of June 24, 2024 (the "Series G Debentures").
"Consistent with the conservative financial management we have demonstrated, our capital allocation decisions are focused on maintaining the financial flexibility to execute on our strategy," said Grant Isaac, Cameco's Executive Vice-President and CFO. "In a market where we believe the demand for secure and carbon-free nuclear electricity generation and the fuel required to run reactors is stronger and more durable than ever, Cameco is well-positioned for disciplined and sustainable growth, while maintaining the ability to self-manage risk."
The Series I Debentures will be direct, unsecured obligations of Cameco and will rank equally and rateably with all other unsecured and unsubordinated indebtedness of Cameco. The Series I Debentures are being offered on a private placement basis in Canada in reliance upon exemptions from the prospectus requirements under applicable securities legislation. The Series I Debentures are being offered on an agency basis by a syndicate of agents led by TD Securities Inc., RBC Capital Markets and Scotiabank.
The Series I Debentures have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer and sale of the Series I Debentures in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The Series I Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any other jurisdiction, and may not be offered or sold in the United States, or to or for the account or benefit of a U.S. person, absent registration under, or an applicable exemption from the registration requirements of, the U.S. Securities Act.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Series I Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Profile
Cameco is one of the largest global providers of the uranium fuel needed to energize a clean-air world. Our competitive position is based on our controlling ownership of the world's largest high-grade reserves and low-cost operations, as well as significant investments across the nuclear fuel cycle, including ownership interests in Westinghouse Electric Company and Global Laser Enrichment. Utilities around the world rely on Cameco to provide global nuclear fuel solutions for the generation of safe, reliable, carbon-free nuclear power. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan, Canada.
As used in this news release, the terms we, us, our, the Company and Cameco mean Cameco Corporation and its subsidiaries unless otherwise indicated.
Caution Regarding Forward-Looking Information and Statements
The statements contained in this news release regarding the Offering, including the expected closing date of the Offering, the anticipated use of proceeds, and the statements regarding our views on the demand for secure and carbon-free nuclear electricity generation and the fuel required to run reactors, and regarding our position to achieve disciplined and sustainable growth while maintaining the ability to self-manage risk, are forward-looking information or forward-looking statements under Canadian and U.S. securities laws.
They are subject to the risk that the Offering will not be completed as planned, and the risks regarding the uranium market, and our market position as described in our most recently filed Annual Information Form and MD&A. This forward-looking information assumes that the Offering will be successfully completed, and is subject to other assumptions regarding the uranium market, and our market position that are described in our most recently filed Annual Information Form and MD&A. We will not necessarily update this information unless we are required to by securities laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240521847268/en/
Investor inquiries:
Rachelle Girard
306-956-6403
rachelle_girard@cameco.com
Media inquiries:
Veronica Baker
306-385-5541
veronica_baker@cameco.com
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NexGen Energy Ltd. ("NexGen" or the "Company") (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased to announce that on May 21 st the Company is submitting to the Federal regulator the Canadian Nuclear Safety Commission ("CNSC") responses to the remaining 49 technical review comments received on February 12, 2024 as part of the Federal Environmental Assessment ("EA") review process for the Company's 100% owned Rook I Project (the "Project").
The 49 technical comments represent the remaining aspects of the original 274 questions received from the CNSC from their technical review of the Rook I Project Draft Environmental Impact Statement ("EIS") submitted by NexGen in June 2022 . As part of this submission, NexGen has also submitted a revised Federal EIS to the CNSC as part of the response process.
Leigh Curyer, NexGen's Chief Executive Officer, commented: "The Company received Provincial EA approval in November 2023 and then submitted responses to the full Federal technical review comments and received ~80% accepted in round 1. The submission of these remaining 49 responses represents another significant milestone in the final advancement of the Federal EA for the Rook I Project.
The NexGen team commends the rigour and diligence of the Federal EA process which formally began 5 years ago with the submission of the Project Description – as it validates the technical robustness of the Project, which, once approved, will be the world's largest and lowest-cost uranium fuel producer, providing outstanding environmental, social, and economic benefits for current and future generations.
With NexGen's Federal Licence Application having been accepted by the CNSC in September 2023 , and full support and consent for the Project from the four local, Rights-bearing Indigenous Nation partners, we look forward to the successful conclusion of the Federal EA technical review process and the establishment of a Federal Commission Hearing date to conclude the approval process for this generational project, enabling construction and operation of this environmentally elite and fully supported green energy project."
All four Local Priority Area ("LPA") Communities – the Clearwater Dene Nation ("CRDN"), Birch Narrows Dene Nation ("BNDN"), Buffalo River Dene Nation ("BRDN"), and Métis Nation – Saskatchewan ("MN-S") on behalf of MN-S Northern Region 2 ("NR2") – have formally confirmed their consent and strong support for NexGen's stewardship of the Rook I Project through the signing of industry-leading Benefit Agreements. All four have fully signed off on all aspects of the Federal EA process required at this time and are advocating for its imminent approval.
In accordance with established Federal EA process, the CNSC will now conduct a completeness check of NexGen's most recent submission, which will be completed within 30 days. Upon conclusion of the completeness check, technical review of NexGen's comment responses and revised EIS will be undertaken by the CNSC through the Federal-Indigenous Review Team which is prescribed as 60 days. Upon confirmation from the CNSC that all technical comments have been resolved and acceptance of the EIS as final, the CNSC will establish a Federal Commission Hearing date.
NexGen Energy is a Canadian company focused on delivering clean energy fuel for the future. The Company's flagship Rook I Project is being optimally developed into the largest low cost producing uranium mine globally, incorporating the most elite standards in environmental and social governance. The Rook I Project is supported by a NI 43-101 compliant Feasibility Study which outlines the elite environmental performance and industry leading economics. NexGen is led by a team of experienced uranium and mining industry professionals with expertise across the entire mining life cycle, including exploration, financing, project engineering and construction, operations and closure. NexGen is leveraging its proven experience to deliver a Project that leads the entire mining industry socially, technically and environmentally. The Project and prospective portfolio in northern Saskatchewan will provide generational long-term economic, environmental, and social benefits for Saskatchewan, Canada , and the world.
NexGen is listed on the Toronto Stock Exchange, the New York Stock Exchange under the ticker symbol "NXE" and on the Australian Securities Exchange under the ticker symbol "NXG" providing access to global investors to participate in NexGen's mission of solving three major global challenges in decarbonization, energy security and access to power. The Company is headquartered in Vancouver, British Columbia , with its primary operations office in Saskatoon, Saskatchewan .
The information contained herein contains "forward-looking statements" within the meaning of applicable United States securities laws and regulations and "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, statements with respect to mineral reserve and mineral resource estimates, the 2021 Arrow Deposit, Rook I Project and estimates of uranium production, grade and long-term average uranium prices, anticipated effects of completed drill results on the Rook I Project, planned work programs, completion of further site investigations and engineering work to support basic engineering of the project and expected outcomes. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Statements relating to "mineral resources" are deemed to be forward-looking information, as they involve the implied assessment that, based on certain estimates and assumptions, the mineral resources described can be profitably produced in the future.
Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about NexGen's business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including among others, that the mineral reserve and resources estimates and the key assumptions and parameters on which such estimates are based are as set out in this news release and the technical report for the property , the results of planned exploration activities are as anticipated, the price and market supply of uranium, the cost of planned exploration activities, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment, supplies and governmental and other approvals required to conduct NexGen's planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward looking information or making forward looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate in the future.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, the existence of negative operating cash flow and dependence on third party financing, uncertainty of the availability of additional financing, the risk that pending assay results will not confirm previously announced preliminary results, conclusions of economic valuations, the risk that actual results of exploration activities will be different than anticipated, the cost of labour, equipment or materials will increase more than expected, that the future price of uranium will decline or otherwise not rise to an economic level, the appeal of alternate sources of energy to uranium-produced energy, that the Canadian dollar will strengthen against the U.S. dollar, that mineral resources and reserves are not as estimated, that actual costs or actual results of reclamation activities are greater than expected, that changes in project parameters and plans continue to be refined and may result in increased costs, of unexpected variations in mineral resources and reserves, grade or recovery rates or other risks generally associated with mining, unanticipated delays in obtaining governmental, regulatory or First Nations approvals, risks related to First Nations title and consultation, reliance upon key management and other personnel, deficiencies in the Company's title to its properties, uninsurable risks, failure to manage conflicts of interest, failure to obtain or maintain required permits and licences, risks related to changes in laws, regulations, policy and public perception, as well as those factors or other risks as more fully described in NexGen's Annual Information Form dated February 24, 2023 filed with the securities commissions of all of the provinces of Canada except Quebec and in NexGen's 40-F filed with the United States Securities and Exchange Commission, which are available on SEDAR at www.sedar.com and Edgar at www.sec.gov .
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or statements or implied by forward-looking information or statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned not to place undue reliance on forward-looking information or statements due to the inherent uncertainty thereof.
There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws .
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SOURCE NexGen Energy Ltd.
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The results come from First Quantum Minerals’ initial drilling program at Honeymoon; In light of these results, First Quantum has committed to proceeding with Phase 2 of the farm-in program
Boss Energy Limited (ASX: BOE; OTCQX: BQSSF) is pleased to announce that First Quantum Minerals’ (TSE:FM) (First Quantum) maiden diamond drilling program on Honeymoon’s tenements in South Australia has successfully intersected basement-hosted base metal mineralisation below the Yarramba Palaeovalley which holds the uranium.
Highlights
Figure 1: Stratiform and vein-hosted chalcopyrite mineralisation in metasiltstones at Atlas target
Summary of drilling results from First Quantum 2023 drilling on EL6081 and EL6510
Following a phase of regional data assessment and targeting for base metals in the Paleo-Mesoproterozoic basement stratigraphy, a rotary mud-diamond drilling program was conducted on EL6081 and EL6510 during October-December 2023. Six holes totalling 2,473.4m across three targets were completed by DDH1 Drilling. The program intended to test several target styles associated with the Bimba Formation, the regionally anomalous unit that hosts the majority of known base and precious metal occurrences in the region.
Atlas target
Three holes totalling 1,029.5m were completed at the Atlas target, 4km east of Honeymoon. Drilling yielded several zones of stratiform and vein-hosted copper mineralisation with minor gold and outboard weak zinc at the interpreted Bimba Formation position, in two holes separated by 1.3km strike length. Mineralised intercepts include 16m @ 0.27% Cu and 0.1g/t Au, from 288m (23CURDD002) and 47m @ 0.19% Cu from 404m (23CURDD006), with a number of narrower zones of 5-6m containing up to 0.5% Cu and 0.12g/t Au. The intercepts are proof of process; evidence for movement and precipitation of copper (~gold/~zinc) within the Bimba Formation in the target area.
Click here for the full ASX Release
US President Joe Biden signed the Prohibiting Russian Uranium Imports Act into law on Monday (May 13), effectively starting the process of ending US dependence on imported uranium supply.
“This new law reestablishes America’s leadership in the nuclear sector. It will help secure our energy sector for generations to come,” said National Security Advisor Jake Sullivan in a White House statement.
“And — building off the unprecedented US$2.72 billion in federal funding that Congress recently appropriated at the President’s request — it will jumpstart new enrichment capacity in the United States and send a clear message to industry that we are committed to long-term growth in our nuclear sector,” he continued.
The act aligns with multilateral goals established last December with US production allies, including Canada, France, Japan and the UK. They pledged to invest US$4.2 billion to expand uranium enrichment and conversion capacities.
The US' reliance on Russian uranium dates back in 1993 under the Megatons to Megawatts program, which was established shortly after the Cold War. The initiative involved the purchase of 500 metric tons of uranium from dismantled Russian nuclear warheads, which was then converted into fuel for nuclear reactors.
The new legislation is set to change the status quo. With the backing of the federal government, the US has set its sights on sourcing its uranium needs locally, starting with the production of high-assay low-enriched uranium (HALEU) in Ohio.
The Prohibiting Russian Uranium Imports Act garnered unanimous consent in the Senate on April 30.
The bipartisan bill, which received approval from the House of Representatives in December, includes provisions for waivers in the event that US nuclear reactors have trouble securing non-Russian supply. Moreover, it earmarks US$2.7 billion to bolster the development of the domestic uranium-processing industry.
According to 2023 data from the US Energy Information Administration, 12 percent of the country's yearly uranium imports originated in Russia, while 25 percent of material was mined in Kazakhstan and 11 percent in Uzbekistan.
Uranium fuels nuclear reactors, playing a vital role in electricity generation. The US ban on Russian imports mirrors previous actions taken against the nation, such as the prohibition of Russian oil imports following the country's invasion of Ukraine in 2022, alongside the implementation of price controls on select crude product exports.
The ban on Russian imports is expected to disrupt an estimated US$1 billion in annual trade flow to Russia. Replacing this supply is likely to be challenging, and could raise enriched uranium costs by up to 20 percent.
The statute, which will expire at the end of 2040, includes provisions allowing the Department of Energy (DOE) to issue waivers authorizing Russian uranium imports according to limits established in an anti-dumping agreement.
Senator John Barrasso, a Republican senator from Wyoming and a top figure on the Senate Energy Committee, emphasized the readiness of states like Wyoming to step in and fill the void left by Russian imports.
"Our bipartisan legislation will help defund Russia's war machine, revive American uranium production, and jumpstart investments in America's nuclear fuel supply chain," noted the lawmaker in a press release.
Work to produce HALEU in the US is reportedly already underway.
Last autumn, a facility in Ohio initiated the nation's first domestic production of HALEU, albeit at a small scale. Now, with the support of the federal government, efforts are underway to expand domestic production capacity.
The DOE has offered private companies a minimum of US$2 million each to kickstart HALEU production, marking the second phase of a US$500 million allocation from Biden's climate-spending law, the Inflation Reduction Act.
“Boosting our domestic uranium supply won’t just advance President Biden’s historic climate agenda, but also increase America’s energy security, create good-paying union jobs, and strengthen our economic competitiveness,” said Ali Zaidi, Biden’s national climate adviser, in a statement released earlier this year.
Speaking to CNBC in August 2022, Edward McGinnis, former chief executive of fuel-recycling Startup Curio, raised the potential of recycling nuclear waste to complement traditional uranium mining.
He called on the Senate and White House to champion measures to deploy nuclear waste recycling, describing it as a win-win solution that addresses both the nuclear waste problem and the need for domestic fuel production.
This is an updated version of an article first published by the Investing News Network on May 1, 2024.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
NexGen Energy Ltd. ("NexGen" or the "Company") (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased to announce that the Company has closed its previously announced offering (the " Offering ") of 20,161,290 common shares, settled in the form of CHESS Depository Interests (" CDIs "), at a price of C$11.11 per share (based on the daily average exchange rate of A$1.00 = C$0.8963 published the Bank of Canada on April 29, 2024 ), under an amended and restated placement agreement dated April 30, 2024 with a lead manager and bookrunner in Australia Aitken Mount Capital Partners.
The Offering was distributed to Australian investors to enhance the liquidity, trading volumes and market capitalization of the Company's CDIs listed on the ASX.
The net proceeds from the Offering will be used to fund the continued development and further exploration of the Company's mineral properties, and for general corporate purposes.
CDIs and underlying Shares have not been registered under the U.S. Securities Act of 1933, and may not be offered or sold in the United States absent registration thereunder or an applicable exemption from the registration requirements thereof.
NexGen is a British Columbia corporation focused on the development of the Rook I Project located in the southwestern Athabasca Basin, Saskatchewan, Canada, into production.
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the Shares, or CDIs, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The information contained herein contains "forward-looking statements" within the meaning of applicable United States securities laws and regulations and "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, the volume, liquidity and market capitalization of the CDIs . Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.
Forward-looking information and statements are based on NexGen's current expectations, beliefs, assumptions, estimates and forecasts about its business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including, among others; the price of uranium; the cost of planned exploration and development activities; that, as plans continue to be refined for the development of the Rook I Project, there will be no changes in costs, engineering details or specifications that would materially adversely affect its viability; that financing will be available if and when needed and on reasonable terms; that third-party contractors, equipment, supplies and governmental and other approvals required to conduct NexGen's planned exploration and development activities will be available on reasonable terms and in a timely manner; that there will be no revocation of government approvals; that general business, economic, competitive, social and political conditions will not change in a material adverse manner; the assumptions underlying the Company's mineral reserve and resource estimates; assumptions made in the interpretation of drill results and other geological information; the ability to achieve production on the Rook I Project; other estimates, assumptions and forecasts disclosed in the Feasibility Study for the Rook I Project. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements were considered reasonable by management at the time they were made, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, negative operating cash flow and dependence on third party financing; uncertainty of the availability of additional financing; price of uranium; the appeal of alternate sources of energy; exploration and development risks; uninsurable risks; reliance upon key management and other personnel; imprecision of mineral resource estimates; potential cost overruns on any development; pending assay results; changes in climate or increases in environmental regulation; aboriginal title and consultation issues; deficiencies in the Company's title to its properties; information security and cyber threats; failure to manage conflicts of interest; failure to obtain or maintain required permits and licenses; changes in laws, regulations and policy; changes in government policy; competition for resources and financing; volatility in market price of the Common Shares; potentially dilutive future financings; financial and uranium market reactions, as well as effects on individuals on which NexGen relies, as a result of global pandemics (including COVID-19); speculative nature of exploration and development projects; liquidity of securities of NexGen; dilution risks to existing securityholders; risks associated with the sale of securities of NexGen; inability to exploit, expand and replace mineral reserves and mineral resources, as well as those factors or other risks as more fully described in NexGen's Annual Information Form dated March 6, 2024 filed with the securities commissions of all of the provinces and territories of Canada and in NexGen's 40-F filed with the United States Securities and Exchange Commission, which are available on SEDAR+ at www.sedarplus.ca and Edgar at www.sec.gov .
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or statements or implied by forward-looking information or statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned not to place undue reliance on forward-looking information or statements due to the inherent uncertainty thereof.
There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
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SOURCE NexGen Energy Ltd.
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Dasa Uranium Project Remains on Schedule to Produce Yellowcake in Q1 2026
Global Atomic Corporation ("Global Atomic" or the "Company"), (TSX: GLO) (OTCQX: GLATF) (FRANKFURT: G12) announced today its operating and financial results for the quarter ended March 31, 2024 . For more detail please refer to the Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis for the three months ended March 31, 2024 on the Company's website at www.globalatomiccorp.com .
Dasa Uranium Project – 2024 Feasibility Study
Dasa Uranium Project – Mine Development
Dasa Uranium Project - Off-take Agreements
Turkish Zinc Joint Venture
Corporate
Global Atomic President and CEO, Stephen G. Roman commented, "We continue to be very active in advancing the Dasa Project, as supplies and equipment flow into the country through our alternate supply routes.
The Government of Niger continues to provide strong support for Dasa, as evidenced by a site visit from the Mines Minister of Niger in early May. Niger has endorsed the Dasa Project and is pleased with our progress to date as they recognize the strategic value of the uranium projects in the Agadez region and the near-term economic benefit that will be realized in the form of local employment, taxes and royalties from Dasa.
"Underground development has reached over 1,000 meters, as we extend the ramp to open five mining levels prior to production and develop drifts along the footwall of the deposit to access the planned stopes. As we undertake the earthworks and civil engineering to prepare for the construction of the processing plant, we currently employ over 300 people at the Dasa Project, a number that is expected to grow to over 500 during full construction. We are on schedule to bring the Dasa Project into production in Q1 2026."
"Project Financing for the Dasa processing plant continues to move forward. The banking syndicate has informed us that they anticipate credit committee and final Board approval this quarter. It is expected that the debt financing facility will provide 60% of the project funding and 50% of cost overruns, if any. The Company is also in discussions with alternative financing sources."
OUTLOOK
Dasa Uranium Project
Turkish Zinc Joint Venture
COMPARATIVE RESULTS
The following table summarizes comparative results of operations of the Company:
Three months ended March 31, | |||
(all amounts in C$) | 2024 | 2023 | |
Revenues | $ 271,463 | $ 130,841 | |
General and administration | 2,199,221 | 2,832,831 | |
Share of equity (gain) loss | (333,686) | 1,388,274 | |
Finance income, net | (241,631) | (71,468) | |
Foreign exchange (gain) loss | (3,750,362) | 1,210,716 | |
Net income (loss) | $ 2,397,921 | $ (5,229,512) | |
Net income (loss) attributable to: | |||
Shareholders of the Company | 2,383,178 | (5,237,663) | |
Non-controlling interests | 14,743 | 8,151 | |
Other comprehensive income | $ 685,111 | $ 2,718,776 | |
Comprehensive income (loss) attributable to: | $ 3,083,032 | $ (2,510,736) | |
Comprehensive income (loss) attributable to: | |||
Shareholders of the Company | 3,047,947 | (2,518,218) | |
Non-controlling interests | 35,085 | 7,482 | |
Basic net income (loss) per share | $0.01 | ($0.03) | |
Diluted net income (loss) per share | $0.01 | ($0.03) | |
Basic weighted-average | 208,080,080 | 184,583,128 | |
Diluted weighted-average | 213,208,175 | 184,583,128 | |
March 31, | December 31, | ||
2024 | 2023 | ||
Cash and cash equivalents | $ 18,572,407 | $ 24,857,915 | |
Property, plant and equipment | 145,905,549 | 129,986,343 | |
Exploration & evaluation assets | 1,536,432 | 1,370,358 | |
Investment in joint venture | 13,523,632 | 12,628,251 | |
Other assets | 11,650,460 | 8,755,878 | |
Total assets | $ 191,188,480 | $ 177,598,745 | |
Total liabilities | $ 19,543,999 | $ 19,412,976 | |
Total equity | $ 171,644,481 | $ 158,185,769 |
The condensed interim consolidated financial statements reflect the equity method of accounting for Global Atomic's interest in the Turkish JV. The Company's share of net earnings and net assets are disclosed in the notes to the financial statements.
Uranium Business
Niger Mining Company
On December 23, 2020 , GAFC was granted a Mining Permit for the Dasa Project on behalf of a Niger mining company to be incorporated. The Mining Permit is valid for an initial term of 10 years and is renewable for successive five-year terms until the resource is depleted. The Company's Niger mining subsidiary, Société Minière de DASA S.A. ("SOMIDA") was incorporated on August 11 , 2022. In accordance with the mining agreement signed by GAFC and the Republic of Niger on September 25, 2007 , the latter received a 10% free carried interest in the mining subsidiary and exercised its right to subscribe for an additional 10%, resulting in a total ownership of 20% of the shares of Somida. Under the terms of the Company's Mining Agreement, the Republic of Niger commits to fund its proportionate share of capital costs and operating deficits for the additional 10% interest. The Republic of Niger has no further option to increase its ownership.
2024 Feasibility Study
Based on the mining inventory defined in the 2023 Mineral Resource Estimate , the economic analysis in the 2024 Feasibility Study is for a 23 .75 -year mine plan using a discounted cash flow ("DCF") model at a price of US$75 per pound of U 3 O 8 . The DCF includes an assessment of the current tax regime and royalty requirements in Niger . Net present value ("NPV") figures were calculated using a discounted cash flow rate for the base-case analysis of 8% ("NPV 8 "), discounting net cash flows to the start of operations, January 1, 2026 , and deducting undiscounted remaining initial capital costs therefrom.
Economic sensitivity with varying uranium prices (USD) | ||||
Uranium price (per pound) | $60/lb | $75/lb | $90/lb | $105/lb |
Before-tax NPV @ 8% | $656 M | $1,122 M | $1,572 M | $2,022 M |
After-tax NPV @ 8% | $551 M | $917 M | $1,269 M | $1,621 M |
After-tax IRR | 38.2 % | 57.0 % | 74.8 % | 92.9 % |
The 2024 Feasibility Study is based on a plant throughput of 1,000 tonnes per day (t/d) or 365,000 tonnes per annum (t/a). The plant equipment has been designed for 1,200 t/d throughput but the 2024 Feasibility Study assumes plant availability of 86% (1,200 t/d x 86% = 1,032 t/d).
The Arlit processing plants achieve 92% availability, by comparison. If SOMIDA has a similar experience, throughput would increase to about 1,104 t/d (1,200 t/d x 92% = 1,104 t/d). The plant layout has been optimised to enable the addition of more processing lines in the future. Much of the equipment has been over-sized by 20%, so minimal capital costs would be required to achieve throughput of 1,325 t/d (1,200 t/d x 1.2 x .92 = 1,325 t/d). Fixed mining, processing and site costs are significant, so increases in throughput would have a significant impact on reducing unit costs.
Ore processed will vary in grade and impact cash cost in the various periods in the table below. Further drilling to convert high grade Inferred Resources to the Indicated category is expected to increase the grade profile and project economics in the later years of the Mine Plan.
2026-32 | 2033-40 | 2041-49 | 2026-49 | |
Years | 7 | 8 | 8.75 | 23.75 |
Ore processed (MT) | 2.5 | 2.9 | 2.7 | 8.0 |
Grade (ppm) | 5,538 | 4,274 | 2,668 | 4,113 |
U 3 O 8 produced (Lbs M) | 27.6 | 25.4 | 15.2 | 68.1 |
Average Annual (Lbs M) | 3.9 | 3.2 | 1.7 | 2.9 |
Mining cost per pound | $5.77 | $8.84 | $15.61 | $9.10 |
Processing cost per pound | $7.66 | $9.35 | $15.37 | $10.00 |
G&A cost per pound | $5.26 | $6.08 | $9.52 | $6.51 |
Total cash cost per pound before royalties | $18.69 | $24.28 | $40.50 | $25.62 |
Project Development Schedule
Mine development activities at the Dasa Project have been underway since November 2022 . The current mine plan has been developed to coincide with the start-up of the processing plant at the beginning of 2026, with a target surface stockpile of 2 to 3 months production available for the processing plant at any time. Long lead equipment purchases have been made and detailed engineering is well advanced. Although some earthworks projects have been undertaken by SOMIDA and its staff over the past year, full-scale earthworks have been contracted and commenced in May. Civils works will follow and processing plant equipment will begin arriving at site in Q4 2024. Erection of the processing plant and site infrastructure will take place from Q4 2024 through Q4 2025, with hot commissioning completed by January 2026 . Processing of ore through the plant is expected to begin in January 2026 .
Global Atomic holds a 49% interest in Befesa Silvermet Turkey, S.L. ("BST" or the "Turkish JV") which owns and operates an EAFD processing plant in Iskenderun, Türkiye. The plant processes EAFD containing 25% to 30% zinc that is obtained from electric arc steel mills, and produces a zinc concentrate grading 65% to 68% zinc that is then sold to zinc smelters. The Company's investment is accounted for using the equity basis of accounting. Under this basis of accounting, the Company's share of the BST's earnings is shown as a single line in its Consolidated Statements of Income (Loss).
The following table summarizes comparative results for Q1 2024 and 2023 of the Turkish Zinc JV at 100%.
Three months ended March 31, | |||
2024 | 2023 | ||
100 % | 100 % | ||
Net sales revenues | $ 9,508,298 | $ 5,836,394 | |
Cost of sales | 8,415,706 | 6,671,321 | |
Foreign exchange gain | 240,854 | 76,065 | |
EBITDA (1) | $ 1,333,446 | $ (758,862) | |
Management fees & sales commissions | 767,865 | 384,014 | |
Depreciation | 552,362 | 968,502 | |
Interest expense | 564,683 | 550,124 | |
Foreign exchange loss on debt and cash | 1,143,712 | 322,358 | |
Monetary gain | (1,373,721) | (1,095,707) | |
Tax (recovery) expense | (1,002,446) | 945,059 | |
Net income (loss) | $ 680,991 | $ (2,833,212) | |
Global Atomic's equity share | $ 333,686 | $ (1,388,274) | |
Global Atomic's share of EBITDA | $ 653,389 | $ (371,842) |
(1) | EBITDA is a non-IFRS measure, does not have a standardized meaning prescribed by IFRS and may not be comparable to similar terms and measures presented by other issuers. EBITDA comprises earnings before income taxes, interest expense (income), foreign exchange loss (gain) on debt and bank, depreciation, management fees, sales commissions, losses (gains) on sale of property, plant, and equipment. |
The Turkish JV realized significant growth in revenues during Q1 2024 compared to 2023. Operations in Q1 2023 were adversely affected by significant earthquakes in Türkiye. In Q1 2024, the Turkish JV sold 9.3 million pounds of zinc concentrate, increase from the 3.7 million pounds sold in the corresponding period last year. Despite a decline in the average monthly LME zinc price, which decreased to US$1.1 per pound in Q1 2024 from US$1.42 per pound in Q1 2023, the profit margin experienced a positive impact primarily attributed to reduced unit costs in EAFD and coking coal, resulting in a favorable EBITDA.
The cash balance of the Turkish Zinc JV was US$2.3 million at March 31, 2024 .
The following table summarizes comparative operational metrics of the Iskenderun facility.
Three months ended March 31, | |||
2024 | 2023 | ||
100 % | 100 % | ||
Exchange rate (C$/TL, average) | 22.95 | 13.96 | |
Exchange rate (US$/C$, average) | 1.35 | 1.35 | |
Exchange rate (C$/TL, period-end) | 23.87 | 14.18 | |
Exchange rate (US$/C$, period-end) | 1.36 | 1.35 | |
Average monthly LME zinc price (US$/lb) | 1.11 | 1.42 | |
EAFD processed (DMT) | 19,990 | 6,125 | |
Production (DMT) | 6,251 | 1,812 | |
Sales (DMT) | 6,477 | 2,479 | |
Sales (zinc content '000 lbs) | 9,271 | 3,656 |
QP Statement
The scientific and technical disclosures in this Management's Discussion and Analysis have been extracted from the 2024 Feasibility Study, which was reviewed and approved by Dmitry Pertel , M.Sc., MAIG, John Edwards , B.Sc. Hons., FSAIMM, Andrew Pooley , B. Eng (Hons) ., FSAIMM who are "qualified persons" under National Instrument 43-101 – Standards of Disclosure for Mineral Properties.
Advance Notice By-law
The Company has adopted By-law No. 4 of the Company (the "Advance Notice By-law"), a by-law that requires advance notice be given to the Company when director nominations are made by shareholders other than through a requisition for a meeting or through a shareholder proposal, in each case in accordance with the Business Corporations Act ( Ontario ).
The Advance Notice By-law provides a clear and fair process enabling shareholders to nominate directors for election to the Company's Board of Directors within a reasonable timeframe while ensuring that all shareholders receive such notice and information about director nominees necessary to exercise their voting rights in an informed manner. The Advance Notice By-law is similar to advance notice by-laws adopted by other Canadian public companies.
The Advance Notice By-law is effective immediately and will be presented to be approved, ratified and confirmed by a majority of the votes cast by shareholders at the Company's upcoming annual and special meeting of shareholders to be held on June 26 , 2024. The full text of the Company's Advance By-law will be included in the Company's 2024 proxy circular and is currently available on SEDAR+, which can be accessed at www.sedarplus.ca/landingpage/ .
About Global Atomic
Global Atomic Corporation ( www.globalatomiccorp.com ) is a publicly listed company that provides a unique combination of high-grade uranium mine development and cash-flowing zinc concentrate production.
The Company's Uranium Division is currently developing the fully permitted, large, high grade Dasa Deposit, discovered in 2010 by Global Atomic geologists through grassroots field exploration. The "First Blast Ceremony" occurred on November 5, 2022 , and commissioning of the processing plant is scheduled for Q1, 2026. Global Atomic has also identified 3 additional uranium deposits in Niger that will be advanced with further assessment work.
Global Atomic's Base Metals Division holds a 49% interest in the Befesa Silvermet Turkey, S.L. (BST) Joint Venture, which operates a modern zinc recycling plant, located in Iskenderun, Türkiye. The plant recovers zinc from Electric Arc Furnace Dust (EAFD) to produce a high-grade zinc oxide concentrate which is sold to zinc smelters around the world. The Company's joint venture partner, Befesa Zinc S.A.U. (Befesa) holds a 51% interest in and is the operator of the BST Joint Venture. Befesa is a market leader in EAFD recycling, with approximately 50% of the European EAFD market and facilities located throughout Europe , Asia and the United States of America .
The information in this release may contain forward-looking information under applicable securities laws. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Global Atomics' development potential and timetable of its operations, development and exploration assets; Global Atomics' ability to raise additional funds necessary; the future price of uranium; the estimation of mineral reserves and resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; cost of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental and permitting risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "is expected", "estimates", variations of such words and phrases or statements that certain actions, events or results "could", "would", "might", "will be taken", "will begin", "will include", "are expected", "occur" or "be achieved". All information contained in this news release, other than statements of current or historical fact, is forward-looking information. Statements of forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Global Atomic to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Global Atomic and in its public documents filed on SEDAR from time to time.
Forward-looking statements are based on the opinions and estimates of management at the date such statements are made. Although management of Global Atomic has attempted to identify important factors that could cause actual results to be materially different from those forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance upon forward-looking statements. Global Atomic does not undertake to update any forward-looking statements, except in accordance with applicable securities law. Readers should also review the risks and uncertainties sections of Global Atomics' annual and interim MD&As.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this news release.
SOURCE Global Atomic Corporation
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