2023-05-08
Uranium developer Global Atomic (TSX: GLO) announced today that the company has formalized its June 2022 letter of intent by signing a definitive agreement with a major North American utility for their procurement of uranium from the Dasa project.
The company said the agreement represents the supply of up to 2.1 million pounds U3O8 within a multi-year delivery window beginning in 2025, representing about 7% of Dasa’s annual production over the period with a revenue potential valued in excess of US$110 million in real terms.
Global Atomic added that in January 2023, the company formalized a similar agreement with another major North American utility for the procurement of Dasa’s uranium, representing the supply of 2.4 million pounds U3O8 over a six-year period commencing in 2025, representing a revenue potential of US$140 million in real terms.
In total, these two agreements represent revenue potential of over US$250 million.
President and CEO Stephen G. Roman commented, “These agreements to supply international electric utilities are important milestones for our company that provide confirmation to our banks, shareholders and the Government of Niger that we have established a guaranteed revenue stream for Dasa.
“This quarter we are actively in discussions with other utilities for similar agreements with the pre-production intent of signing sufficient volume to cover Dasa’s cost of production.”
Global Atomic’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. 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, which operates a modern zinc production plant, located in Iskenderun, Türkiye. The plant recovers zinc from electric arc furnace dust to produce a high-grade zinc oxide concentrate which is sold to zinc smelters around the world.
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