Global Atomic’s shares rose over 20% after the company confirmed the continued progress of its Dasa uranium project in Niger. Strong backing from Niger’s new government and successful funding discussions at the Mining Indaba Conference have bolstered investor confidence. The company expects to produce substantial uranium output as construction remains on schedule, with pending financing cementing its growth trajectory.
Global Atomic (TSX: GLO) experienced a notable increase in its share price, rising over 20% after reaffirming progress on its Dasa uranium project in Niger. The company reported successful discussions at the African Mining Indaba Conference and garnered interest from potential investors seeking to fund the project, which is crucial for its advancement.
In October, Global Atomic announced interest from an unnamed US development bank to provide a $295 million loan, covering 60% of the project’s costs. The firm also secured C$40.3 million from a public offering and an additional C$35.6 million from a private placement, which will sustain the project until the bank funds are received.
Once operational, the Dasa underground mine is projected to produce 68.1 million pounds of uranium oxide (U3O8) over a 23-year lifespan, supported by a processing capacity of 1,000 tonnes per day. The company has secured offtake agreements for approximately 8.8 million pounds of yellowcake during the first seven years, primarily targeting U.S. utilities, which account for 90% of these contracts.
Construction at the Dasa site is on schedule, with earthworks nearing completion and civil works ongoing, as the plant is set for commissioning by early 2026. The new military-led government of Niger has expressed strong support for the project, assuring Global Atomic that it does not plan to nationalize the uranium operations.
This assurance is noteworthy given the challenges that other uranium mining companies have faced in Niger, including the revocation of permits and nationalization of operations. Notably, last year, the Nigerien government took control of Orano’s Imourare mine and revoked GoviEx Uranium’s Madaouela project license amid rising uranium market prices, which reached their peak in 15 years.
Following the announcement and positive developments, Global Atomic’s shares closed 23.4% higher at C$0.58, close to their 52-week low of C$0.43. The company currently holds a market capitalization of C$152.8 million, reflecting its strategic position in the uranium market amid a backdrop of government support and promising project timelines.
Global Atomic’s reaffirmation of its Dasa uranium project progress, coupled with strong government support and significant financial commitments, has led to a robust rise in its share price. The company is poised for future growth with secured funding and production forecasts, distinguishing itself amid challenging conditions faced by other uranium miners in Niger.
Original Source: www.mining.com
