TORONTO, October 5, 2022 /CNW/ – Global Atomic Corporation (“Global Atomic” or the “Company”), GLO GLATF (Frankfurt: G12) is pleased to announce that it has received a Letter of Intent (“LOI”) from a second major Western utility to procure uranium from the Company’s Dasa project in the Republic Niger.
HIGHLIGHTS
- The LOI represents the delivery of up to 2.4 million pounds of U3O8th within a multi-year delivery window beginning in 2025, representing approximately 7% of Dasa’s annual Phase 1 production over that period.
- The sales potential of this award, rated at $140 million in real terms reflects the Company’s continued strategy to enter into sale agreements with Tier 1 global utilities in amounts sufficient to underwrite debt financing, thereby limiting equity dilution when Dasa’s operations come into production .
- Pricing is done in the context of the market using a mixed formula.
- The award is subject to the successful conclusion of a purchase agreement, which the company will now press ahead with.
President and CEO of Global Atomic, Stephen G Roman commented: “This award complements the milestone offtake agreement we announced earlier this year and demonstrates the credibility Dasa is building in the uranium market. It follows the recent EPCM (Engineering, Procurement and Construction Management) announcement of the processing facility, which is scheduled to begin underground mining next month.”
“It is becoming clear that the unprecedented geopolitical situation increases the need for geographic diversity in economic nuclear fuel supply. Additionally, the nuclear energy landscape is extremely vibrant as the drive for energy independence complements the global push for low-carbon baseload energy. ”
“Our Dasa project has a long life expectancy, with the 12-year Phase 1 accounting for approximately 20% of the known deposit. We look forward to nurturing this new and important supply relationship for decades to come.“
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