Global Atomic (TSX: GLO) has tumbled this morning following Niger’s ruling junta revoking a military agreement that was in place with the United States. The revocation followed reports of a delegation from Washington being in-country for talks with the military leadership.
The US base in Niger was previously used to monitor regional jihadist activity. The base was operated under an agreement that had been in place since 2012, as per CNN, with as many as 1,100 service members stationed at the base.
In making the decision to remove the US from the base, a military spokesman stated, “The US presence on the territory of the Republic of Niger is illegal and violates all the constitutional and democratic rules which would require the sovereign people… to be consulted on the installation of a foreign army on its territory.”
The junta later claimed that the US delegation had accused Niger of supplying uranium to Iran, while saying that the US was looking to prevent it from working with its “preferred partners,” a reference to Russia.
Global Atomic this morning meanwhile issued a brief press release, with CEO Stephen G Roman saying that the company is pursuing, “other financing strategies to meet its project funding requirements,” while stating that the situation in the region is “fluid.”
“Given strong third-party interest in Global Atomic’s high-grade uranium project and our plans for near-term production, there are many groups interested in funding the Dasa Project. The Company will assess these options, monitor events in Niger and keep shareholders appraised.”
READ: Global Atomic Reports After-Tax NPV (8%) Of $917 Million For Dasa Project
Global Atomic is currently focused on the development of the Dasa Project, which it says is the highest-grade uranium development project in Africa. An updated feasibility study released earlier this year outlined an after-tax NPV (8%) of $917 million for the project, based on $75 per pound uranium. The updated study is based on a mining plan of 23 year, with total production of 68.1 million pounds of uranium.
Global Atomic last traded at $2.29 on the TSX, down 26.8%.
Information for this story was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
