Global Atomic Announces Q2 Results
Toronto, ON, August 13, 2020: Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) announced today its operating and financial results for the three and six months ended June 30, 2020.
Dasa Uranium Project: Preliminary Economic Assessment (“PEA”)
- A PEA of the Phase 1 Development Plan for the Dasa Uranium Deposit was filed on SEDAR, indicating an initial 12-year mine schedule to produce 44.1 million pounds U3O8, with an average processed grade of 5,396 ppm;
- The PEA estimates cash costs of US $16.72/lb U3O8, including corporate and all other off-site costs, and an all-in sustaining cost of US $18.39/lb U3O8;
- Based on a U3O8 price of $35/lb, the after-tax NPV discounted at 8% was estimated at $211 million for an after-tax IRR of 26.6%.
Mining Permit Application
- A Hydrogeological water well drilling and testing program has been completed to support the Mining Permit application;
- An Environmental Impact Statement (“EIS”) was completed and filed with the Niger Government;
- A preliminary geotechnical report was completed and identified the drilling required to finalize geotechnical inputs to the final mine design.
Turkish Zinc Joint Venture
- The new Turkish Zinc recovery plant continues to ramp up with improved operating efficiencies;
- The Company’s share of the Turkish Joint Venture (“Turkish JV”) EBITDA was $0.9 million in Q2 2020 ($0.8 million in Q1);
- The non-recourse Turkish JV debt was US $22.85 million (Global Atomic share – $11.2 million) at the end of Q2 2020 and the cash balance was US $1.9 million;
- The Company’s share of the Turkish JV loss was $1.2 million, attributable to a $1.5 million unrealized foreign exchange loss on the Turkish debt, due to the decline in both the Turkish Lira and the Canadian dollar relative to the US dollar.
- Global Atomic continues to receive management fees and sales commissions from the Turkish JV, helping to offset corporate overhead costs;
- Bob Tait was appointed Vice-President Investor Relations effective June 1, 2020;
- Trace Arlaud, M.Eng., was appointed to the Board as an independent director effective June 29, 2020;
- The Company completed a private placement of 5,538,335 Units on May 15th at a price of $0.60 per Unit for gross proceeds of $3,323,000. Each Unit comprised one common share and one-half warrant exercisable at $0.85 per common share over a 24-month period with an accelerator clause if the shares trade above C$1.10 for 20 days.