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(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 union 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 utilities in early 2025.
The Dasa project is a large, high-grade uranium deposit that lies within the Adrar Emoles III license area, 105km south of the established uranium mining town of Arlit, in the Republic of Niger.
In Q4 2021, the company completed a 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 NPV8 after-tax 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 begin by the end of 2024. Mine excavation began in Q1 2022.
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