TORONTO, May 15, 2020 (GLOBE NEWSWIRE) -- Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) announced today it has raised gross proceeds of C$3,323,000 pursuant to the closing of a non-brokered private placement of 5,538,335 Units at a price of C$0.60. Units consist of one common share and one-half common share purchase warrant exercisable at C$0.85 for a period of two years from closing, subject to accelerated expiry should Global Atomic Corporation common shares close at or above C$1.10 on the Toronto Stock Exchange for twenty (20) consecutive trading days.
A cash finder’s fee equal to 5% of cash raised and finder’s warrants equal to 5% of common shares placed was paid pursuant to the closing of certain orders for a total of $114,400 and 149,000 finders warrants. Finder’s warrants are exercisable at C$0.67 for a period of two years from closing subject to accelerated expiry as above. All securities issued pursuant to the private placement are subject to a four month hold period ending September 16, 2020.
Red Cloud Securities Inc. and Arlington Group Asset Management Ltd. acted as finders in the private placement. Proceeds from the sale of the Units will be used to fund technical work in support of mine permits and feasibility work for the Issuer’s Dasa Property in Niger, West Africa and working capital.
Stephen G. Roman, President & CEO stated, “Due to COVID-19 and uncertain markets, we felt it prudent to bolster our working capital in order to complete the necessary technical work required for our Dasa Mining Permit Application. We expect business to return to normal operations in due course and are fortunate to have a very supportive shareholder base and management team who have all participated in this financing.”
Certain insiders of the Company subscribed for Units pursuant to the Offering. Any issuance of Units to an insider will be considered to be a "related party transaction" within the meaning of Multilateral Instrument 61-101 (“MI 61-101”). The related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders exceeds 25% of the Company's market capitalization.
About Global Atomic
Global Atomic Corporation is a TSX listed company with a unique combination of high grade uranium development and cash flowing zinc concentrate production.
The Company’s Uranium Business 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 3 concession, discovered in 2010 by Global Atomic geologists through grassroots field exploration. GA Mining Permit for the Dasa Deposit will be applied for in H2 2020.
Global Atomic’s EAFD Business 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 for sale to zinc smelters around the world. The Company’s joint venture partner, Befesa Zinc S.A.U., a wholly-owned subsidiary of Befesa, S.A. (“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 Asia.
Key contacts:
Stephen G. Roman Merlin Marr-Johnson
Chairman, President & CEO Executive Vice President
Tel: (416) 368-3949 Tel: +44 (0)7803 712 280
Email: sgr@globalatomiccorp.com Email: mmj@globalatomiccorp.com
The information in this release may contain forward-looking information under applicable securities laws. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Global Atomic’s development potential and timetable of its operating, development and exploration assets; Global Atomic’s ability to raise additional funds necessary; the future price of uranium; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental and permitting risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", “targets”, "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Global Atomic to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Global Atomic and in its public documents filed on SEDAR from time to time.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Global Atomic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Global Atomic does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Global Atomic’s annual and interim MD&As.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.