TORONTO – Global Atomic Corporation (TSX: GLO, FRANKFURT: G12) today announced the size and pricing of its previously announced overnight marketed public offering. The Company has entered into an underwriting agreement with Red Cloud Securities Inc., as lead underwriter and sole bookrunner, and Cormark Securities Inc. for the sale of 28,571,430 units of the Company at a price of C$3.50 per Unit for aggregate gross proceeds of C$100,000,005.
Each Unit will consist of one common share of the Company and one half of one Common Share purchase warrant. Each Warrant will be exercisable for one Common Share at a price of C$4.40 per Warrant Share at any time for a period of 36 months following the closing of the Offering.
The Company has granted the Underwriters an option, exercisable in whole or in part, at the sole discretion of the Underwriters, at any time for a period of 30 days from and including the closing of the Offering, to purchase from the Company for resale up to an additional 15% of the number of Units sold under the Offering, on the same terms and conditions of the Offering to cover over-allotments, if any, and for market stabilization purposes. In the event the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering to the Company will be approximately C$115 million.
The Company will shortly file an amended and restated preliminary short form prospectus with the securities commissions in each of the Provinces of Canada (except Québec) amending and restating the preliminary short form prospectus filed on January 24, 2023 and setting out the terms of the Offering. The Amended Preliminary Prospectus will be available on SEDAR at www.sedar.com.
The Company intends to use the net proceeds raised from the Offering to fund a portion of the capital costs required to advance the Company’s Dasa Project in the Republic of Niger to commercial production and for general working capital purposes. Please refer to the Company’s press release dated January 9, 2023 that outlines its plans for the Dasa Project in 2023.
The Offering is scheduled to close on or around February 14, 2023, or such other date as the Company and the Underwriters may agree. Closing of the Offering is subject to customary closing conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the securities regulatory authorities and the Toronto Stock Exchange.
Global Atomic Corporation is a publicly listed company that provides a unique combination of high-grade uranium mine development and cash-flowing zinc concentrate production.
The Company’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. With the issuance of the Dasa Mining Permit and an Environmental Compliance Certificate by the Republic of Niger, 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, S.L. (BST) Joint Venture, which operates a modern zinc production plant, located in Iskenderun, Turkey. The plant recovers zinc from Electric Arc Furnace Dust (EAFD) to produce a high-grade zinc oxide concentrate which is sold to zinc smelters around the world. The Company’s joint venture partner, Befesa Zinc S.A.U. (Befesa) holds a 51% interest in and is the operator of the BST Joint Venture. Befesa is a market leader in EAFD recycling, with approximately 50% of the European EAFD market and facilities located throughout Europe, Asia and the United States of America.