GLATF - Global Atomic Finalizes Letter of Intent for Its Third Agreement to Supply Uranium to North American Nuclear Utilities | Benzinga
TORONTO, Oct. 2, 2023 /CNW/ - Global Atomic Corporation ("Global Atomic" or the "Company"), (TSX:GLO) (OTCQX:GLATF) (Frankfurt: G12) is pleased to announce that it has finalized a Letter of Intent ("LOI") for the sale of uranium from the Company's Dasa Project in the Republic of Niger. This is the third such agreement signed by the Company and brings our current contracted volume close to 1.5 million pounds U3O8 per annum over Dasa's initial five years of operation.
- The LOI represents the supply of up to 3.5 million pounds U3O8 within a multi-year delivery window beginning in 2026, representing about 14% of Dasa's annual adjusted Phase 1 production over the period. The total offtake now contracted is approximately 30% of Dasa's initial five-year scheduled production.
- In light of the considerable improvement in market conditions, the pricing formula applied in this agreement captures firming fundamentals.
- The revenue potential of this award at current prices, valued at approximately US$250 million in nominal terms, reflects the Company's continued strategy of establishing sales contracts in support of Tier 1 global utilities at volumes sufficient to underwrite debt financing, thereby limiting equity dilution as the Dasa operation moves into production.
- Under this agreement, Global Atomic is pleased to provide a fuel solution for defined North American utility demand, at a time of increasing supply uncertainty.
- The award is subject to the successful conclusion of a purchase-sale contract, which the Company will now progress.
Global Atomic President and CEO, Stephen G. Roman commented, "This award adds to the two off-take arrangements we announced in 2022, both of which have been successfully converted into purchase-sale contracts. The timing of this agreement demonstrates the credibility that Dasa is building within the uranium market while the Company manages its project development amid recent political restructuring in Niger. We were heartened to ...