Global Atomic expects US$295M loan for Dasa in Q1

Global Atomic (TSX: GLO) said on Tuesday it expects to secure a project financing loan from an unnamed U.S. development bank early next year for its Dasa uranium project in Niger, signalling the project is track despite the troubles other companies have faced since a military coup in the country last year.

Global reported that the bank confirmed its intention to approve a US$295-million debt facility, which would cover 60% of the project’s projected costs.

Dasa is the highest-grade uranium deposit in Africa, surpassed only by grades found in Canada’s Athabasca Basin, and is scheduled to achieve commercial production in early 2026.

“The approval timelines outlined by the bank support yellowcake deliveries in 2026 as anticipated in the four off-take agreements we have in place with American and European nuclear power utilities,” president and CEO of Global Atomic, Stephen G. Roman said in a release.

He noted the company raised $40 million in an oversubscribed public offering earlier this month to help fund development of Dasa until the bank funding comes through.

In addition to the development bank, Global Atomic is in discussions with parties regarding potential joint venture investment in Dasa and other financing solutions.

Processing plant

According to Global Atomic, earthworks and civil engineering are progressing in preparation for the installation of plant equipment, components of which are now arriving at the site. More than 1,200 metres of mine development finished at Dasa.

The main fresh air raise is complete, and the return air raise is underway.  Once the fans have been installed, the expansion to the underground ventilation system will allow mining activity to advance beyond the first-level development.

Construction of a 400-person facility is expected to be completed early next year.

Earlier this month, the company said 10,000 tonnes of development ore had been brought to the surface.

Niger coup

Last year’s coup led the U.S. to suspend government funding for Dasa. Still, the company managed to raise $15 million in January and $20 million in July through equity offerings.

The Niger government has pledged its full support for the project, but other uranium developers in Niger faced major setbacks this past summer.

In June, the government withdrew a mining permit for Orano’s Imourare project, and in July, it revoked the mining licence for GoviEx Uranium’s (TSXV: GXU) Madaouela project.

Dasa hosts 73 million lb. in probable reserves of uranium oxide in 8 million tonnes, grading 4,113 parts per million uranium oxide. Global Atomic has signed offtake agreements for 1.3 million lb. of uranium a year.

Global Atomic shares traded at $1.15 apiece on Tuesday morning in Toronto, valuing the company at $304 million.