Global Atomic Corporation (“Global Atomic” or the “Company”) (TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) is pleased to announce that it has closed its previously announced “bought deal” private placement (the “Offering”) for gross proceeds of C$35.0 million. Due to significant investor demand, the Offering was upsized from its original gross proceeds of C$25.0 million. Under the Offering, the Company sold 8,750,000 units of the Company (the “Units”) at a price of C$4.00 per Unit. The Units were sold through a syndicate of underwriters led by Red Cloud Securities and included Cormark Securities Inc. (collectively, the “Underwriters”).
Each Unit is comprised of one common share in the capital of the Company (each, a “Common Share”) and one half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant is exercisable to acquire one Common Share at a price of C$6.00 at any time on or before June 7, 2023.
The Company intends to use the net proceeds raised from the Offering for the exploration and development of the Company’s Dasa uranium project in the Republic of Niger (the “Dasa Project”) and for general working capital and corporate purposes.
In connection with the Offering, the Underwriters received a cash commission equal to 6% of the gross proceeds of the Offering and broker warrants (the “Broker Warrants”) equal to 6% of the aggregate number of Units sold under the Offering. Each Broker Warrant is exercisable to acquire one Common Share at a price of C$4.42 at any time on or before June 7, 2023. All securities issued under the Offering are subject to a statutory hold period under Canadian securities legislation expiring on April 8, 2022.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Global Atomic
Global Atomic Corporation (www.globalatomiccorp.com) 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.
Global Atomics’ 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”) 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, with approximately 50% of the European EAFD market and facilities located throughout Europe, Asia and the United States of America.
Source: Global Atomic