GLOBAL ATOMIC RAISES $9.19 MILLION IN PRIVATE PLACEMENT
Toronto, ON, November 16, 2018: Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX-V: GLO, FRANKFURT: G12) is pleased announce it has raised gross proceeds of $9,191,900 pursuant to the initial closing of a non-brokered private placement of up to $10,000,000 or 33,333,333 shares priced at $0.30 per share. The Company retained Arlington Group Asset Management Limited in London, UK, as its lead capital finder pursuant to the financing. Final closing is scheduled for November 30, 2018.
President and CEO, Stephen G. Roman, commented, “The capital raising is a significant endorsement for Global Atomic from UK and North American institutional investors. Proceeds from the financing will accelerate development of the high grade DASA Uranium Project, where management is targeting to deliver mineralized material to Orano Mining (formerly AREVA SA) by 2020. This timing also coincides with completion of the modernization and expansion of our zinc operations in Turkey by September 2019 and cash flow from these operations will support further development at DASA and other growth initiatives.”
Mr. Roman added “The placement also allows the Company to expand the next drill program on strike and down dip of current mineralization. Drilling completed in 2018 identified several new areas that may substantially impact the size of the deposit.”
Finder’s fees payable under the private placement consist of a cash payment equal to 6% of cash raised and common share purchase warrants equal to 6% of the number of shares issued in connection with certain orders for a total of $467,414 and 1,491,380 warrants. Finder’s warrants are exercisable at $0.30 for a period of eighteen (18) months from closing.
Proceeds from the financing will be used to fund technical studies and permitting related to commercial production, exploration at DASA and for general corporate purposes.
About Global Atomic
Global Atomic Corporation is a TSX Venture listed company providing a unique combination of high grade uranium development and cash flowing zinc concentrate production.
The Company’s Uranium Division includes six exploration permits in the Republic of Niger covering an area of approximately 750 km2. Uranium mineralization has been identified on each of the permits, with the most significant discovery being the DASA deposit situated on the Adrar Emoles III concession, discovered in 2010 by Global Atomic geologists through grassroots field exploration.
Global Atomics’ Base Metals Division holds a 49% interest in Befesa Silvermet Turkey, S.L. (“BST”) joint venture, which operates a processing facility, located in Iskenderun, Turkey, that converts Electric Arc Furnace Dust (“EAFD”) into 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”, listed on the Frankfurt exchange under ‘BFSA’), holds a 51% interest in and is the operator of the BST joint venture. Befesa is a market leader in EAFD recycling, capturing approximately 50% of the European EAFD market with facilities located throughout Europe and Korea.
BST is well underway with an expansion project to significantly modernize and expand its processing plant in Turkey. The expansion is targeted to double annual production of zinc from 30 million lbs to 60 million lbs and is supported by EAFD supply currently available for processing in Turkey. The new plant is scheduled for completion by September 2019.
Stephen G. Roman George A. Flach, P.Geo.
Chairman, President & CEO Vice President, Exploration
Tel: (416) 368-3949 Tel: (416) 368-3949
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