ValOre Metals (TSX:VO) focuses on high-quality metals and projects. The company's flagship uranium asset Angilak is located in Nunavut, Canada, covers 59,583 hectares, and has district-scale potential for uranium along with precious and base metals. The company is also exploring its Brazilian project targeting PGEs and gold.
The Angilak project has significant upside potential due to its land area and deposits. The area represents Canada’s highest grade uranium resource outside Saskatchewan and one of the highest grade uranium resources on a global basis, according to ValOre VP of exploration Colin Smith.
ValOre Metals is also exploring its Pedra Branca PGE project in northeastern Brazil. As another district-scale mining project, the asset covers 56,852 hectares with multiple PGE and gold deposits. Ownership of the asset gives ValOre control of an entire PGE belt. The company has three additional projects for future exploration: Hatchet Lake, Baffin Gold and Genesis.
The company a member of the Discovery Group, an alliance of nine publicly traded companies with a track record of successfully increasing shareholder value, often through tactful exits via mergers and acquisitions.
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Sprott Asset Management CEO John Ciampaglia has called 2022 a “Dawn of a New Nuclear Renaissance” as governments worldwide strive to reduce emissions and realize they won’t likely meet their targets with wind and solar power alone. Nuclear energy currently supplies 10 percent of the world’s electricity, and as more nuclear power plants remain in operation and new ones come online, demand for uranium, a crucial element used to produce nuclear energy, will continue to rise.
In fact, in Q3 2022, uranium price reached a yearly high of US$52.27, a US$10 increase from January 2022. Based on the projected demand increase and a dwindling supply, some analysts anticipate the spot price for uranium to double to US107.70 by 2030. Investors can capitalize on this potential growth through commodity investing, energy ETFs or stocks of miners targeting uranium. When investing in a miner, investors benefit from both market trends and the company’s growth and successes.
ValOre Metals (TSX:VO) is a Canadian exploration mining company focusing on high-quality metals and projects. Angilak, the company’s flagship uranium asset located in Nunavut, Canada, covers 59,583 hectares and has district-scale potential for uranium along with precious and base metals. The company is also exploring its Brazilian project targeting PGEs and gold.
ValOre is a member of the Discovery Group, an alliance of nine publicly traded companies with a track record of successfully increasing shareholder value, often through tactful exits via mergers and acquisitions. An experienced management team leads the company toward its goal of improving shareholder value at every opportunity.
Discovery Group’s track record of value creation includes over US$2.4 billion through mergers and acquisitions since 2016. The company’s track record includes Great Bear acquired by Kinross Gold for US$1.8 billion, Kaminak Gold acquired by Gold Corp for US$520 million and Northern Empire acquired by Coeur Mining for US$117 million. ValOre’s directors were involved in many of Discovery Group’s successes, including the Kaminak and Northern Empire acquisitions.
ValOre’s Angilak project has significant upside potential due to its land area and deposits. The area represents Canada’s highest grade uranium resource outside Saskatchewan and one of the highest grade uranium resources on a global basis, according to ValOre VP of exploration Colin Smith.
ValOre Metals is also exploring its Pedra Branca PGE project in northeastern Brazil. As another district-scale mining project, the asset covers 56,852 hectares with multiple PGE and gold deposits. Ownership of the asset gives ValOre control of an entire PGE belt. The company has three additional projects for future exploration: Hatchet Lake, Baffin Gold and Genesis.
An experienced management team leads ValOre towards creating shareholder value as it continues to explore its significant assets. The team’s expertise includes mineral exploration, corporate administration, and international finance. Combined with added support from the Discovery Group, ValOre is poised to continually increase shareholder value through the exploration of its district-scale assets.
The Angilak project covers 59,583 hectares within Canada’s Nunavut Territory. The project contains the highest-grade uranium resource of scale outside of the Athabasca Basin. ValOre recently commenced an C$11 million exploration campaign throughout the project focusing on high-priority targets.
Project Highlights:
The Pedra Branca project in northeast Brazil covers 56,852 hectares, including over 70 kilometers of a prospective Archean mafic-ultramafic “Troia Unit.” The district-scale asset gives ValOre complete control of the entire PGE belt. ValOre is presently compiling and reviewing historical data, conducting geological mapping, and conducting Trado auger drilling/trenching.
Project Highlights:
In addition to the Angilak and Pedra Branca projects, ValOre also owns three additional projects with tremendous potential for future exploration.
Project Highlights:
Jim Patterson is a principal of Discovery Group and has been actively involved in marketing and corporate development activities for the group of companies since 2002. Paterson has 23 years of industry experience, including capital raises, acquisitions, joint-ventures, spin-outs, RTOs, and IPOs. He is the chairman and CEO of Valore Metals Corp. and was a driving force behind more than $60 million in equity financings for ValOre that lead to multiple discoveries and a 200 percent increase in mineral resources at ValOre’s Angilak uranium project.
Paterson was a long-standing and active director of Kaminak Gold Corp. (acquired by Goldcorp.) and founding director of Northern Empire Resources Corp. (acquired by Coeur Mining). In 2007, He founded Corsa Capital Ltd. Corsa’s 2008 IPO led to a 2010 transaction which created a leading U.S. metallurgical coal producer with a C$250 million market capitalization.
Paterson is a director of Great Bear Royalties Corp., and Strategic Advisor to Great Bear Resources Ltd., Genesis Metals Corp., Kodiak Copper Corp., and Ethos Gold Corp.
Dale Wallster is a geologist and a prospector with over 40 years experience, focused on targeting and discovery of unconformity-related uranium, structurally-controlled gold, and VMS deposits.
He was president and founder of Roughrider Uranium Corp., a company acquired by Hathor Exploration Limited. Wallster and his team are widely credited in the mineral exploration sector for the discovery of Hathor's Roughrider deposit. In January 2012, Hathor became a wholly owned subsidiary of Rio Tinto as part of a C$650 million acquisition.
Jim Malone was chairman of the WNA's Fuel Technology Working Group, widely recognized as a nuclear industry and nuclear fuel expert, with more than 50 years of experience in the downstream business. He was the chairman of Hathor Exploration at the time of Rio Tinto’s acquisition for $650 million, and senior vice-president at Lightbridge Corporation.
Garth Kirkham has over 30 years of experience in 3D geoscience computer modeling. He is currently heading Kirkham Geosystems Ltd., which provides consulting services to the environmental, mining, geotech and oil & gas industries.
He obtained a bachelor's degree in science from the University of Alberta in 1983, completing his degree with majors in geophysics, geology and mathematics, and is a registered professional geoscientist in Alberta, Northwest Territories, BC, Ontario and Manitoba.
Darren Klinck is an accomplished mining executive with a wide range of management experience working throughout Australasia & The Americas. He was president & CEO of Bluestone Resources following the acquisition of the Cerro Blanco gold project in Guatemala in 2017, where he led the team that financed and advanced the project through resource expansion, feasibility and engineering phases of the project development. Prior to that, he spent more than ten years with OceanaGold as a member of the executive committee that achieved significant growth and business expansion to become a multi-mine, international gold mining company growing from a sub-C$100 million market capitalization to greater than C$3 billion market capitalization.
Over the past 20 years, Klinck has been instrumental in negotiating both equity and debt financing packages totaling more than $800 million and has significant experience leading teams in emerging markets with a strong focus on corporate social responsibility and community engagement programs, as well as extensive government relations activities.
Robert Scott, CPA, CA, CFA brings more than 20 years of professional experience in accounting, corporate finance, and merchant and commercial banking and has served on the management teams and boards of a number of Canadian publicly traded companies. He is a founder and president of Corex Management Inc., a private company providing accounting, administration and corporate compliance services to privately held and publicly traded companies. Scott currently holds senior management and board positions with a number of TSX Venture Exchange issuers including Riverside Resources Inc., Great Bear Resources Ltd. and Northern Empire Resources Corp.
Colin Smith is a registered professional geologist (P.Geo.) in British Columbia, Saskatchewan, Nunavut and the Northwest Territories with over 16 years experience developing, executing and managing exploration campaigns in North and South America, ranging from early-stage project generation to near-mine resource delineation. Smith’s passion for exploration and discovery has garnered him technical expertise with structurally hosted gold, ultramafic-associated PGEs, porphyry copper-gold, diamonds, unconformity-related uranium and coal. Smith started with ValOre in August 2018, overseeing new project review for the company. This followed his role as senior exploration geologist with SSR Mining Inc. at the Seabee Gold Operation in northern Saskatchewan, where he designed and implemented all Seabee-based exploration activities, resulting in multiple auriferous discoveries and resource delineation. Smith holds a B.Sc. in geology from the University of British Columbia (2007), and an M.Sc. in economic geology from the University of Victoria (2012).
Thiago Diniz is an exploration geologist with over eight years of experience working on early- to advanced-stage fertilizer, base and precious metals projects, both in Brazil and Canada, including three world-class mineral deposits (Troilus Au-Cu, in Quebec, Canada; and Belo Sun – Au, and Brazil Potash, in Brazil). He is experienced in the development and management of large-scale drilling, field mapping and metallurgical programs. Diniz is a registered P.Geo. in Ontario and Quebec (Géo) and holds a B.Sc. in geology from Universidade Federal de Minas Gerais (2013) and a M.Sc. in economic geology from Queen’s University, Kingston (2019).
Jeff Dare has over ten years of professional experience managing external reporting and corporate compliance for TSX Venture Exchange and CSE listed issuers. He currently serves as the corporate secretary and advisor of a number of listed issuers, and works closely with external partners and service providers in the areas of legal, compliance, transfer agency, audit, banking and insurance. He obtained his BA from Simon Fraser University.
Valore Metals Corp. (TSXV: VO) is pleased to announce that the company will be presenting at Red Cloud's 2022 Fall Mining Showcase. We invite our shareholders and all interested parties to join us there.
The annual conference will be hosted in-person, at the Sheraton Centre Toronto Hotel from November 9-10, 2022.
Jim Paterson, CEO will be presenting on November 10th at 3:40pm Eastern Standard time.
For more information and/or to register for the conference please visit: https://redcloudfs.com/fallminingshowcase2022/.
We look forward to seeing you there.
For further information:
Valore Metals Corp.
Dustin Zinger
1.604.653.9464
contact@valoremetals.com
https://valoremetals.com/
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While times are changing, the consequences of an enduring low-price environment have been significant, leading to curtailments in production, as well as a dearth of new discoveries. For years, industry leaders have said the uranium spot price needs to rise above US$50 to US$60 — and stay above that point — before such activity becomes economical again.
More recently, as rising inflation pushes costs in the mining sector, analysts have suggested that the incentive price for developing new greenfield uranium projects might be higher. “The costs have gone up significantly,” John Ciampaglia, CEO of Sprott Asset Management, told the Investing News Network (INN). “We think the cost — or the price that you would need to see in uranium to incent development of any new greenfield project — is somewhere between US$75 and US$100.”
The 2021 uranium price rally came after supply cuts from major producers, including Kazakhstan's Kazatomprom and Canada's Cameco (TSX:CCO,NYSE:CCJ), alongside the emergence of the Sprott Physical Uranium Trust (TSX:U.UN). The more recent rally was sparked by a confluence of global and market events, including the Russia-Ukraine war, uranium supply challenges related to conversion and enrichment and the drive for nuclear energy to be a part of the fight to combat climate change.
The uranium market's back-and-forth struggle to move out of a years-long trough has investors asking, "When will uranium prices go up?" Before we try to answer that question, we'll have a look at what's moved the uranium spot price in the past, including the energy metal's supply and demand dynamics.
As briefly outlined above, uranium has experienced a wide price range this past century — while its highest level was nearly US$140, the lowest U3O8 spot price came in at just US$7.
In 2003, the price of uranium began an upward trend as demand for nuclear power rose alongside the world's need for energy, especially in growth economies such as China and India. These increasing energy demands came at the same time as significant supply-side disruptions. For example, in 2006, Cameco's massive Cigar Lake mine in Saskatchewan flooded, stalling production for several years at one of the largest undeveloped uranium deposits in the world.
The inability to move this uranium ore to market was a huge setback for the uranium industry, and translated into explosive price growth for the metal in 2007. However, those impressive gains were soon undone by the 2008 economic crisis, which sent uranium on a downward spiral, slipping below the key US$50 level in early 2009. In 2010, it slipped into the US$40 range.
Uranium's price history over the last 25 years.
Uranium price chart via Trading Economics.
In 2011, uranium got a serious push to the upside along with other energy metals as the global economy began to recover. The tight supply situation, heightened by years of low prices, also played a part in pushing the spot price past the US$70 level.
After the 2011 Fukushima disaster in Japan shook confidence in the sector, the uranium spot price began a slow slide to lows not seen since the start of the century, ultimately bottoming out at US$18 in November 2017. Although COVID-19-induced supply disruptions at the world's top uranium mines briefly sent the commodity to a four year high of US$33.93 in May 2020, it wasn't until the fall of 2021 that uranium started to find its footing again.
The launch of the Sprott Physical Uranium Trust and ongoing concerns over future supply shortages pushed the uranium spot price across the US$50 threshold in September 2021. Prices were soon see-sawing between US$38 and US$48 in October and November, but the start of 2022 brought civil unrest in Kazakhstan, as well as Russia's invasion of Ukraine. These events proved price positive for the uranium market, and by mid-April, uranium prices had reached an 11 year high of US$64.61.
Looking at the demand side, utility companies have once again returned to the table to sign new long-term uranium supply agreements to secure price and supply. This has coincided with uranium supply challenges related to conversion and enrichment. The result was that from April 2021 to April 2022, the price of uranium soared by an eye-popping 106.47 percent.
By H2 2022, uranium prices had begun to slide back to the US$50 range. Much like the broader commodities market, uranium felt the squeeze of higher interest rates as central banks, including the US Federal Reserve, sought to curb rising inflation.
However, the uranium price has been able to remain above the US$48 level into the first quarter of 2023 on positive fundamentals born out of the view that nuclear energy is critical to reducing global carbon emissions.
Uranium prices are mainly influenced by aboveground mine supply and demand for nuclear energy. To understand where those stand, investors in this sector typically look to:
Analysts with a bullish lean believe the uranium market cycle has reached its bottom and that a break to the upside for uranium prices is supported by positive supply and demand fundamentals.
On the demand side, nuclear energy generated from 440 reactors around the globe supplies about 10 percent of the world's energy requirements. China alone is constructing 21 new reactors at the moment, while Russia is constructing three with another 11 planned and India has eight nuclear reactors under construction.
A World Nuclear Association (WNA) report forecasts 2.6 percent annual growth in nuclear generation capacity over the next two decades for a total of 615 gigawatts electrical in 2040. About 79,400 tonnes of uranium will be required to feed these reactors in 2030, up from 62,500 tonnes in 2021. This figure is expected to grow to 112,300 tonnes of uranium in 2040.
On the supply side, major uranium producers are still not producing at full capacity, while new uranium exploration and development projects are few and far between. Highlighting these circumstances, the WNA points out that world uranium production dropped from 63,207 tonnes of uranium in 2016 to 47,731 tonnes of uranium in 2020. The organization also notes that “only 74 (percent) of 2020's reactor requirements were covered by primary uranium supply.”
Huge cuts to global uranium production have come from Kazakhstan, the world's largest uranium-producing country. Responsible for 41 percent of global uranium production, the Central Asian nation began reducing its annual production levels in 2018 and plans to continue "flexing down" its uranium output through 2022.
Australia, Namibia, Canada and Uzbekistan are also among the world's biggest uranium producers. In Canada, Cameco shuttered the Saskatchewan-based McArthur River mine in 2018 and temporarily closed Cigar Lake — the world's top uranium mine — in response to the COVID-19 pandemic.
There are some signs of an uptick in uranium production since 2020, with the WNA reporting that 2021 global uranium output increased by 601 tonnes to cover 77 percent of reactor requirements for the year. In mid-2022, Kazatomprom announced would be increasing its uranium output throughout 2023 and 2024 based on expected demand levels. Additionally, Cameco brought the McArthur River/Key Lake operation back on line in November 2022. The company plans to produce 15 million pounds of uranium per year from these operations by 2024, which is 40 percent below their annual licensed capacity.
Despite these positive signs, supply deficits are likely to continue in the years ahead. "Uranium production volumes at existing mines are projected to remain fairly stable until the late 2020s, then decreasing by more than half from 2030 to 2040," the WNA report states. This is also due in part to the lack of uranium exploration in recent years. The organization’s research shows that uranium exploration spending fell by 77 percent from 2014 to 2018, dropping to US$483 million.
So when can investors expect to see uranium prices go up? And when will the spot price for the metal once again move above — and stay above — the key US$50 to US$60 level?
In January 2020, Rick Rule, who was then part of Sprott (TSX:SII,NYSE:SII), told INN that investors interested in uranium should be prepared to take the long position — in his opinion, it could be a while before we see a rebound in the uranium market. Rule reiterated his stance in a July 2021 interview with INN, pointing to Japanese restarts as the last catalyst needed to launch a new era of strength in the uranium market. “Everything else is in place,” he said at the time.
There's been progress on that front since then. Japanese Prime Minister Fumio Kishida announced in August 2022 that the nation is moving to restart its idled nuclear plants; it is also developing next-generation reactors as part of the government’s "green transformation." Japan is aiming for nuclear power to account for 20 to 22 percent of its energy mix by 2035, and the first phase in reaching this goal is the planned restart of at least seven additional reactors by mid-2023.
A true renaissance for uranium might be a few years off or just around the corner. Either way, market participants are likely to see a series of incremental price increases along the way, and probably some volatility. Ciampaglia told INN: “The uranium market is not a very big market compared to, say, the oil and gas market and other commodity markets. It doesn't take a lot of capital to come from the generalist pool of capital to make a ripple in the uranium market."
A good gauge for where the winds are blowing is utilities contracts, as these entities are traditionally the greatest sources of uranium demand. In fact, only about 10 to 15 percent of uranium trades happen on the spot market — the vast majority of uranium is sold through large long-term contracts between producers and utilities.
It's also useful to watch the rest of the nuclear fuel cycle. Speaking to INN in September 2022, Ciampaglia pointed out that Russia controls 25 percent of global conversion capacity and almost 40 percent of enrichment capacity — this dominance amid the country's war with Ukraine has spiked prices for these services. "We think eventually what's happening to the prices of conversion and enrichment is going to kind of move backwards into the chain and ultimately lift the price of U3O8," he said.
UxC estimates that by 2030 about two-thirds of utility nuclear fuel requirements will not be covered by contracts, and this will reach 81 percent in 2035. The lack of new uranium projects coming online is a considerable part of this equation. As utilities' inventories decline, they will be willing to accept higher contract prices to replenish their energy fuel stock. Much higher long-term contract prices will in turn bring uranium spot prices along for the ride.
In terms of exactly how high uranium prices could get in the future, there are a wide range of views.
Ben Finegold of Ocean Wall told INN in an October 2022 interview that his firm believes the uranium spot price could reach US$75 in 2023. His bullish outlook includes the potential for term market pricing reaching US$90 to US$100. "(Inflationary pressures have) really resulted in almost a twofold increase in the breakeven price for western miners — we've seen breakeven levels as high as US$90," he said. "So the price needs to in essence double in order to bring this back online."
In August 2022, the Bank of America (NYSE:BAC) set its uranium spot price target for 2023 at US$70. As of late January 2023, analysts at Trading Economics were forecasting that uranium would trade at US$53.01 in 12 months time.
This is an updated version of an article first published by the Investing News Network in 2020.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Global Atomic Corporation ("Global Atomic" or the "Company") (TSX: GLO, FRANKFURT: G12) today announced the size and pricing of its previously announced overnight marketed public offering (the "Offering"). The Company has entered into an underwriting agreement with Red Cloud Securities Inc., as lead underwriter and sole bookrunner, and Cormark Securities Inc. (together, the "Underwriters") for the sale of 28,571,430 units of the Company (the "Units") at a price of C$3.50 per Unit for aggregate gross proceeds of C$100,000,005.
Each Unit will consist of one common share of the Company (each, a "Common Share") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable for one Common Share (each, a "Warrant Share") at a price of C$4.40 per Warrant Share at any time for a period of 36 months following the closing of the Offering.
The Company has granted the Underwriters an option, exercisable in whole or in part, at the sole discretion of the Underwriters, at any time for a period of 30 days from and including the closing of the Offering, to purchase from the Company for resale up to an additional 15% of the number of Units sold under the Offering, on the same terms and conditions of the Offering to cover over-allotments, if any, and for market stabilization purposes (the "Over-Allotment Option"). In the event the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering to the Company will be approximately C$115 million.
The Company will shortly file an amended and restated preliminary short form prospectus (the "Amended Preliminary Prospectus") with the securities commissions in each of the Provinces of Canada (except Québec) amending and restating the preliminary short form prospectus filed on January 24, 2023 and setting out the terms of the Offering. The Amended Preliminary Prospectus will be available on SEDAR at www.sedar.com.
The Company intends to use the net proceeds raised from the Offering to fund a portion of the capital costs required to advance the Company's Dasa Project in the Republic of Niger to commercial production and for general working capital purposes. Please refer to the Company's press release dated January 9, 2023 that outlines its plans for the Dasa Project in 2023.
The Offering is scheduled to close on or around February 14, 2023, or such other date as the Company and the Underwriters may agree. Closing of the Offering is subject to customary closing conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the securities regulatory authorities and the Toronto Stock Exchange.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold to or for the account or benefit of persons in the "United States" or "U.S. persons" (as such terms are defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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 includes four deposits with the flagship project being the large, high-grade Dasa Project, discovered in 2010 by Global Atomic geologists through grassroots field exploration. With the issuance of the Dasa Mining Permit and an Environmental Compliance Certificate by the Republic of Niger, the Dasa Project is fully permitted for commercial production. The Phase 1 Feasibility Study for Dasa was filed in December 2021 and estimates yellowcake delivery to utilities to commence in 2025. Mine excavation began in Q1 2022.
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 production plant, located in Iskenderun, Turkey. 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.
| Key Contacts: | ||
| Stephen G. Roman Chairman, President and CEO Tel: +1 (416) 368-3949 Email: sgr@globalatomiccorp.com | Bob Tait VP Investor Relations Tel: +1 (416) 558-3858 Email: bt@globalatomiccorp.com | |
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 the completion of the Offering and the timing and over-allotment in respect thereof, the aggregate gross proceeds of the Offering, the use of proceeds of the Offering, the timely receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and Global Atomic's development potential and timetable of its operations, development and exploration assets. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "is expected", "estimates", "scheduled" and 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 Global Atomic's ability to raise additional funds on satisfactory terms to the Company; the future price of uranium; the estimation of mineral reserves and resources; the completion and timing of an updated mineral resource estimate; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; impacts of third-parties and Government policies on the Company's operations; 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 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.
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Global Atomic Corporation ("Global Atomic" or the "Company") (TSX: GLO, FRANKFURT: G12) today announced that it has filed a preliminary short form prospectus with the securities commissions in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, in connection with an overnight marketed public offering (the "Offering") of units of the Company (the "Units"). The Offering is expected to be completed pursuant to an underwriting agreement to be entered into between the Company and Red Cloud Securities Inc., as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters (the "Underwriters").
Each Unit will consist of one common share of the Company (each, a "Common Share") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable to acquire one Common Share. Final pricing of the Units, the exercise price and term of the Warrants and the determination of the number of Units to be sold and gross proceeds of the Offering will be determined in the context of the market.
The Company intends to grant the Underwriters an option, exercisable in whole or in part, at the sole discretion of the Underwriters, at any time for a period of 30 days from and including the closing of the Offering, to purchase from the Company up to an additional 15% of the Units sold under the Offering, on the same terms and conditions of the Offering to cover over-allotments, if any, and for market stabilization purposes (the "Over-Allotment Option").
The Company intends to use the net proceeds raised from the Offering to partially fund the development of the Company's Dasa Project in the Republic of Niger in order to advance exploration and development of the Dasa Project and for general working capital purposes. Please refer to the Company's press release dated January 9, 2023 that outlines its plans for the Dasa Project in 2023.
The Offering is scheduled to close on or around February 14, 2023, or such other date as the Company and the Underwriters may agree. Closing of the Offering is subject to customary closing conditions, including, but not limited to, the execution of an underwriting agreement and the receipt of all necessary regulatory approvals, including the approval of the securities regulatory authorities and the Toronto Stock Exchange. The preliminary short form prospectus is available on SEDAR at www.sedar.com.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold to or for the account or benefit of persons in the "United States" or "U.S. persons" (as such terms are defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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 includes four deposits with the flagship project being the large, high-grade Dasa Project, discovered in 2010 by Global Atomic geologists through grassroots field exploration. With the issuance of the Dasa Mining Permit and an Environmental Compliance Certificate by the Republic of Niger, the Dasa Project is fully permitted for commercial production. The Phase 1 Feasibility Study for Dasa was filed in December 2021 and estimates yellowcake delivery to utilities to commence in 2025. Mine excavation began in Q1 2022.
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 production plant, located in Iskenderun, Turkey. 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.
Key Contacts:
| Stephen G. Roman Chairman, President and CEO Tel: +1 (416) 368-3949 Email: sgr@globalatomiccorp.com | Bob Tait VP Investor Relations Tel: +1 (416) 558-3858 Email: bt@globalatomiccorp.com |
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 the completion of the Offering and the timing in respect thereof, the use of proceeds of the Offering, the entering of an underwriting agreement and timely receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and Global Atomic's development potential and timetable of its operations, development and exploration assets. 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 Global Atomic's ability to raise additional funds on satisfactory terms to the Company; the future price of uranium; the estimation of mineral reserves and resources; the completion and timing of an updated mineral resource estimate; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; impacts of third-parties and Government policies on the Company's operations; 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 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.
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