Make Kitco Your Homepage

Global Atomic receives letters of intent from banking syndicate to finance Dasa uranium project in Niger

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - On Monday, uranium developer Global Atomic (TSX: GLO) announced that the company has now received Letters of Intent from a banking syndicate to finance the Dasa uranium project in Niger. 

According to the company's statement, the syndicate is comprised of North American financial institutions and includes the previously announced indication from Export Development Canada. 

The company said that the names of all members of the syndicate will be named following further due diligence and board approvals by the financial institutions, which are expected to occur by the end of 2022.

President and CEO Stephen G. Roman commented, "This significant milestone keeps us on schedule to complete our Dasa project financing by the end of 2022 and to begin plant construction in Q1 2023.  By taking this step, the syndicate has indicated its confidence in the quality of the Dasa deposit and in management's capability and commitment to execute the Phase 1 plan as outlined in our 2021 Feasibility Study." 

He added that today's announcement, combined with the acceptance of the company's initial off-take sale offer announced on June 15, 2022, and the construction activity ongoing at site, are proof that Global Atomic is well underway towards achieving its goal of delivering yellowcake to utilities in early 2025.

The Dasa project is a large, high-grade uranium deposit that lies within the Adrar Emoles III licence area, 105km south of the established uranium mining town of Arlit, in the Republic of Niger.

In Q4 2021, the company completed Feasibility Study for Dasa, incorporating the Flank Zone, with an Initial Phase 1 mine development over 12 years producing 45.4 million pounds and an after-tax NPV8 of USD $157M & an IRR of 22.7% using uranium price of USD $35/lb.

The Dasa project is fully permitted for commercial production. The company expects that uranium production at Dasa to commence by the end of 2024. Mine excavation began in Q1 2022.


Alamos Gold completes construction, starts initial production at its La Yaqui Grande gold mine in Mexico

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.