Global Atomic inks 3rd LOI for Dasa Project
Global Atomic has finalized a Letter of Intent for the sale of uranium from its Dasa Project, reflecting positive market conditions and the company’s commitment to its project’s development amid various challenges, including political restructuring in Niger.
The LOI which is the third one sealed by the firm, covers the supply of up to 3.5 million pounds of U3O8 within a multi-year delivery window beginning in 2026. This amount represents about 14% of Dasa’s annual adjusted Phase 1 production over the period.
Scope of LOIÂ
With this agreement, the total offtake contracts for uranium from the Dasa Project now amount to approximately 30% of Dasa’s initial five-year scheduled production. The pricing formula applied in this agreement takes into account the improved market conditions for uranium. This indicates that the company is benefiting from favorable market trends.
At current prices, the value of this award is estimated to be around US$250 million in nominal terms. This revenue potential supports the company’s strategy of establishing sales contracts to secure financing and limit equity dilution as the Dasa operation moves into production.
Global Atomic sees this agreement as a way to provide a fuel solution for North American utility demand, particularly in a time of increasing supply uncertainty in the uranium market. The LOI is subject to the successful conclusion of a purchase-sale contract, which Global Atomic will work on progressing.
Global Atomic’s President and CEO, Stephen G. Roman, highlighted the company’s progress in building credibility within the uranium market and the support received for the Dasa Project, especially at the 2023 WNA Conference in London. He emphasized the importance of nuclear power for global energy needs and the long-term potential of the Dasa Operation.
