PRESS RELEASE GLOBAL ATOMIC PROVIDES CORPORATE UPDATE

Transcription

1 PRESS RELEASE GLOBAL ATOMIC PROVIDES CORPORATE UPDATE Trnt, ON, December 4, 2018: Glbal Atmic Crpratin ( Glbal Atmic r the Cmpany ), (TSX-V: GLO, FRANKFURT: G12) is pleased t prvide the fllwing update regarding the filing f the Cmpany s Preliminary Ecnmic Assessment ( PEA ) n Sedar, interim unaudited Financial Statements and MD&A fr the three and nine mnth perid ended September 30, 2018 and the clsing f its nn-brkered Private Placement. Preliminary Ecnmic Assessment Further t the Cmpany s news release dated Octber 23, 2018 a summary f the PEA is prvided belw, including pprtunities being explred thrugh an alternate mining strategy t accelerate develpment f the Prject fr early mining. All figures are stated in U.S. dllars, unless therwise stated. Highlights The bjective f the PEA was t study the DASA Prject as an integrated undergrund mining peratin, prcessing mineralized material thrugh an n-site mill (the DASA Standalne Scenari ) initially perating at 2,500 tpd and ramping up t 3,000 tpd. Highlights include: High grade resurce: 69 millin lbs U 3O 8 recvered at an average grade f 2,380 ppm U 3O 8 ver a 15 year mine life. Scalable prductin: Annual prductin sustained frm 4 Mlb t 7 Mlb U 3O 8 ver the mine life. Lw cst peratin: All-in sustaining cst ( AISC ) f US$28.51/lb U 3O 8. Initial CAPEX: US$320 millin, including US$141 millin fr an n-site mill; US$467 millin including sustaining capital and reclamatin. Significant NPV and prject return at expected lng-term uranium price: NPV and IRR DASA Standalne Scenari Unit Uranium Price (US$/lb U3O8) $45.00 $50.00 $55.00 Pre-Tax 8% US$ M $342 $539 $735 IRR (100% Equity) 27% 37% 46% Pst-Tax 8% US$ M $172 $299 $437 IRR (100% Equity) 18% 25% 32% The PEA was cmpleted in accrdance with NI , Canadian Institute f Mining, Milling and Petrleum ( CIM ) standards. The PEA is preliminary in nature and includes Inferred Mineral Resurces that are t speculative gelgically t have ecnmic cnsideratins applied t them that wuld enable them t be categrized as Mineral Reserves. There is n certainty that PEA results will be realized. Mineral Resurces are nt Mineral Reserves and d nt have demnstrated ecnmic viability. An alternate mine plan scenari, the Alternate Mining Strategy, based n the July 2017 MOU signed with Oran Mining ( Oran ), in which high grade mineralized material is sld t Oran targeting early cash flw, identified a significant value pprtunity. Highlights include:

2 Fast track t cash flw: Accelerated undergrund develpment with minimal infrastructure. Reduced initial capital: US$35 millin t start mining, n mill required. High grade material: Ptential t ship 360,000 tnnes annually fr the 5 year cntract cntaining n average 2.8 millin lbs U 3O 8 grading 3,698 ppm Lw cst mining: Minimizing perating csts, US$10.94 per lb U 3O 8 befre transprt and prcessing, indicates this scenari is ptentially prfitable at lw uranium prices. The Cmpany expects t permit the Alternate Mining Strategy Q4 2019, with ramp develpment beginning as early as Management als identified the fllwing additinal value pprtunities which are currently being explred t imprve verall prject ecnmics: Imprve mdelled uranium recvery with further metallurgical test wrk. Mine plan ptimizatins t reduce dilutin and minimize undergrund develpment. Imprve grade and increase Mineral Resurces with further infill drilling. Value pprtunities currently being explred are expected t be reflected in an updated Feasibility Study targeted fr Financial Statements and MD&A Fr Perids Ended September 30, 2018 On Nvember 28, 2018, the Cmpany filed its financial statements and MD&A fr the three and nine mnths ended September 30, The fllwing summary was prvided. All figures are in Canadian dllars, unless therwise nted. Highlights Cnslidated net incme fr the Cmpany was $5.6 millin fr the 9 mnths ended September 30, 2018 cmpared t $5.8 millin fr the same perid in Net incme fr Q was $0.8 millin cmpared t $3.0 millin in 2017, which results were impacted by a maintenance shutdwn and the decline in zinc prices during Q The Befesa Silvermet Turkey, S.L. ( BST ) jint venture shipped 24.6 millin punds f zinc cntained in cncentrate during the 9 mnths ended September 30, 2018 cmpared with 26.2 millin punds in Glbal Atmic hlds a 49% interest in the BST jint venture. Glbal Atmics 49% share f EBITDA in the BST jint venture fr the 9 mnths ended September 30, 2018 was $10.7 millin cmpared t $9.6 millin in the same perid in Q EBITDA was $1.6 millin cmpared t $4.4 millin in the same perid in The expansin and mdernizatin f the Turkish prcessing plant began in Q US$4.4 millin f the estimated US$26 millin cst has been incurred. On cmpletin, annual prductin capacity will duble t 66 millin punds zinc (100%) and reduce perating csts. Start-up f the new facility is scheduled fr September Additinal drilling and technical studies at the Cmpany s DASA uranium depsit were initiated in early Near surface drilling cnfirmed the Cmpany s understanding f structure and high grade cntinuity at the Flank Zne at DASA.

3 Outlk An updated Mineral Resurce Estimate was cmpleted n the Niger DASA uranium prject in Q2, which: Tripled Indicated Resurces t 64.8 millin punds and imprved grade 18% t 3,068 ppm eu 3O 8. Inferred Resurces were increased t 48.4 millin punds grading 2,600 ppm eu 3O 8. The Cmpany raised $8.6 millin in an equity financing in Nvember Applicatin has been made and the Ministry f Mines f the Republic f Niger has accepted the related payments fr the extensin f the Adrar Emles 3 and 4 Explratin Permits fr a perid f 18 mnths during which time Glbal Atmic will cmplete its Feasibility Study. This applicatin is expected t be finalized shrtly. In additin, the Cmpany will file applicatins fr the extensin f its ther 4 Explratin Permits. A Feasibility study is underway and a final technical reprt fr DASA is expected in H Permitting will cmmence n cmpletin f the final technical reprt. Site preparatins fr mining activities are scheduled t begin in early Expansin and mdernizatin f the Turkish prcess plant is scheduled fr cmpletin in September Existing cash flw and available funding is expected t be sufficient t cmplete this wrk. Base Metals Divisin Results The BST jint venture wns and perates an Electric Arc Furnace Dust ( EAFD ) prcessing plant in Iskenderun, Turkey, which prcesses EAFD btained frm electric arc steel prducers. The EAFD, cntaining 25% t 30% zinc, is prcessed thrugh a kiln t prduce a zinc cncentrate, grading 68% t 70% zinc fr sale t zinc smelters. The fllwing table summarizes cmparative peratinal metrics f the prcessing plant in Iskenderun. Three mnths ended September 30, Nine mnths ended September 30, % 100% 100% 100% Exchange rate (TL/C$, average) Exchange rate (C$/US$, average) Exchange rate (TL/C$, perid-end) Exchange rate (C$/US$, perid-end) EAFD prcessed (DMT) 12,465 18,504 44,848 46,858 Average zinc price (US$/LB.) Prductin (DMT) 3,768 6,700 13,804 16,716 Shipments (DMT) 3,625 6,852 16,148 16,746 Shipments (zinc cntent, 000 lb.) 5,395 10,599 24,658 26,168 Glbal Atmic hlds a 49% interest in the BST jint venture and as such, the investment is accunted fr using the equity basis f accunting and the Cmpany s share f BST s earnings is shwn as a single line in its incme statement. The fllwing table summarizes cmparative results fr the three and nine mnths ended September 30, 2018 and 2017 f the BST jint venture at 100%.

4 Three mnths ended September 30, Nine mnths ended September 30, % 100% 100% 100% Net sales revenues $ 4,711,348 $ 15,201,707 $ 32,697,283 $ 32,887,118 Cst f sales 3,642,417 6,491,911 16,293,483 13,597,799 Freign exchange lss (gain) (2,195,446) (221,742) (5,479,654) (212,103) EBITDA (1) $ 3,264,377 $ 8,931,538 $ 21,883,454 $ 19,501,422 Management fees & sales cmmissins 274, ,384 1,280,582 1,401,067 Depreciatin 84, , , ,362 Interest expense (incme) 19,812 (6,333) 74,401 (41,455) Tax expense 653,250 1,767,137 4,442,887 4,130,422 Net incme $ 2,232,261 $ 6,395,292 $ 15,768,471 $ 13,581,026 Glbal Atmic's equity share $ 1,093,809 $ 3,133,693 $ 7,726,551 $ 6,654,703 (1) EBITDA is a nn-ifrs measure, des nt have a standardized meaning prescribed by IFRS and may nt be cmparable t similar terms and measures presented by ther issuers. EBITDA cmprises earnings befre incme taxes, interest expense (incme) and financing expense (incme), amrtizatin expense, and ther expenses including management fees, sales cmmissins; gain n sale f prperty, plant and equipment and impairment charges. Private Placement The Cmpany is als pleased t annunce that it has cmpleted its previusly disclsed (Nvember 16, 1018) nnbrkered private placement (the ffering ) raising aggregate grss prceeds f $8,591,000. Securities issued pursuant t the ffering are subject t statutry hld perid ending March 17, The Cmpany paid finder s fees n certain subscriptins cmprised f 6% cash and 6% cmmn share purchase warrants with the aggregate finder s fees paid ttaling $467,414 and 1,491,380 warrants. Of the ttal cash finder s fee payable, $351,600 was settled thrugh the issuance f 1,172,000 f cmmn shares f the Cmpany at a price f $0.30 per share. The finder s warrants are exercisable at $0.30 fr a perid f eighteen (18) mnths frm clsing. Prceeds frm the financing will be used t fund technical studies and permitting related t cmmercial prductin, explratin at DASA and fr general crprate purpses. Abut Glbal Atmic Glbal Atmic Crpratin is a TSX Venture listed cmpany prviding a unique cmbinatin f high grade uranium develpment and cash flwing zinc cncentrate prductin. The Cmpany s Uranium Divisin includes six explratin permits in the Republic f Niger cvering an area f apprximately 750 km 2. Uranium mineralizatin has been identified n each f the permits, with the mst significant discvery being the DASA depsit situated n the Adrar Emles III cncessin, discvered in 2010 by Glbal Atmic gelgists thrugh grassrts field explratin.

5 Glbal Atmics Base Metals Divisin hlds a 49% interest in Befesa Silvermet Turkey, S.L. ( BST ) jint venture, which perates a prcessing facility, lcated in Iskenderun, Turkey, that cnverts Electric Arc Furnace Dust ( EAFD ) int a high-grade zinc xide cncentrate which is sld t zinc smelters arund the wrld. The Cmpany s jint venture partner, Befesa Zinc S.A.U. ( Befesa, listed n the Frankfurt exchange under BFSA ), hlds a 51% interest in and is the peratr f the BST jint venture. Befesa is a market leader in EAFD recycling, capturing apprximately 50% f the Eurpean EAFD market with facilities lcated thrughut Eurpe and Krea. BST is well underway with an expansin prject t significantly mdernize and expand its prcessing plant in Turkey. The expansin is targeted t duble annual prductin f zinc frm 30 millin lbs t 60 millin lbs and is supprted by EAFD supply currently available fr prcessing in Turkey. The new plant is scheduled fr cmpletin by September Key cntacts: Stephen G. Rman Gerge A. Flach, P.Ge. Chairman, President & CEO Vice President, Explratin Tel: (416) Tel: (416) sgr@glbalatmiccrp.cm gaflach@glbalatmiccrp.cm The infrmatin in this release may cntain frward-lking infrmatin under applicable securities laws. Frward-lking infrmatin includes, but is nt limited t, statements with respect t cmpletin f any financings; Glbal Atmic s develpment ptential and timetable f its perating, develpment and explratin assets; Glbal Atmic s ability t raise additinal funds necessary; the future price f uranium; the estimatin f mineral reserves and mineral resurces; cnclusins f ecnmic evaluatin; the realizatin f mineral reserve estimates; the timing and amunt f estimated future prductin, develpment and explratin; csts f future activities; capital and perating expenditures; success f explratin activities; mining r prcessing issues; currency exchange rates; gvernment regulatin f mining peratins; and envirnmental and permitting risks. Generally, frward-lking statements can be identified by the use f frward-lking terminlgy such as "plans", targets, "expects" r "des nt expect", "is expected", "budget", "scheduled", "estimates", "frecasts", "intends", "anticipates" r "des nt anticipate", r "believes", r variatins f such wrds and phrases r statements that certain actins, events r results "may", "culd", "wuld", "might" r "will be taken", "ccur" r "be achieved". All infrmatin cntained in this news release, ther than statements f current and histrical fact, is frward lking infrmatin. Frward-lking statements are subject t knwn and unknwn risks, uncertainties and ther factrs that may cause the actual results, level f activity, perfrmance r achievements f Glbal Atmic t be materially different frm thse expressed r implied by such frward-lking statements, including but nt limited t thse risks described in the annual infrmatin frm f Glbal Atmic and in its public dcuments filed n SEDAR frm time t time. Frward-lking statements are based n the pinins and estimates f management as f the date such statements are made. Althugh management f Glbal Atmic has attempted t identify imprtant factrs that culd cause actual results t differ materially frm thse cntained in frward-lking statements, there may be ther factrs that cause results nt t be as anticipated, estimated r intended. There can be n assurance that such statements will prve t be accurate, as actual results and future events culd differ materially frm thse anticipated in such statements. Accrdingly, readers shuld nt place undue reliance n frward-lking statements. Glbal Atmic des nt undertake t update any frward-lking statements, except in accrdance with applicable securities laws. Readers shuld als review the risks and uncertainties sectins f Glbal Atmic s annual and interim MD&As. Neither TSX Venture Exchange nr its Regulatin Services Prvider (as that term is defined in the plicies f the TSX Venture Exchange) accepts respnsibility fr the adequacy r accuracy f this release.