US $11.25m raised for Dasa project in Niger
Global Atomic has raised a sum of $11.25m for Dasa uranium project. The is a large, high-grade uranium deposit that lies within the Adrar Emoles III licence area, 105km south of the established uranium mining town of Arlit, in the Republic of Niger.
The $11.25m was raised through a non-brokered private placement of 6 million units priced at C$2.50 each for gross proceeds of C$15 million ($11.25 million). Regent Mercantile Holdings has agreed to take 2 million units and will assist in the placement of the remaining 4 million units or subscribe to any units that remain unsold at closing.
Dasa uranium project
Each unit consists of one common share of Global Atomic and one-half of one share purchase warrant. The warrants are exercisable at C$3.00 per share and will expire 12 months following the closing date (Dec. 29, 2023), with the possibility of accelerated expiry under certain conditions.
Stephen Dattels and Regent Mercantile are welcomed as shareholders of Global Atomic, bringing broad knowledge of the uranium industry and a notable group of investors. The investment is expected to facilitate the restart of operations at the Dasa uranium project. Global Atomic anticipates benefiting from Regent’s high-level business contacts in the United States through their ownership position in Traxys Group.
The investment aims to support the restart of operations at the Dasa uranium project. The Dasa project is expected to generate a significant internal rate of return (IRR) and a substantial after-tax net present value (NPV) based on a sensitivity analysis at recent spot prices for uranium oxide (U3O8) of $80/lb.
Global Atomic issued a 2023 resource estimate for Dasa, indicating significant quantities of indicated and inferred uranium resources. An updated feasibility study and mine plan are expected in the first quarter of 2024, aiming to extend the life of the current Phase 1 mine and increase Dasa’s mineable reserves.
