Global Atomic (TSX: GLO) has seen huge demand for a public offering, increasing the size of its public offering substantially after the close of markets yesterday. The increase follows the terms of the transaction being released mid-day, following a halt of trading the night before.
The financing, which was upsized from $25 million to that of $35 million, will see the company raise funds from the sale of units at a price of $1.20 per each. Each unit contains one common share and one common share purchase warrant. Warrants are valid for a period of 36 months from the date of issue and contain an exercise price of $1.50 per each.
An over-allotment option is also in play, which could increase the financing further to $40.25 million.
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Proceeds from the offering are to be used for the development of the company’s Dasa project in Niger, as well as for working capital and general corporate purposes.
The Dasa project is a development stage project with early stage construction ongoing. Earthworks are currently underway at the project for an expanded camp that is to house 900 people, along with earthworks for an acid plant, which is nearing completion. Processing plant equipment is also beginning to arrive, while the firms mining team has developed 1,200 metres of the underground mine.
The mine, when fully operational, is expected to produce 68.1 million pounds of U3O8 over a 23 year mine life, with commercial production expected to be achieved in early 2026. Global Atomic is said to be in the process of securing a debt facility worth US$295 million in order to fund 60% of the construction costs of the project, after having already invested US$120 million itself.
Global Atomic last traded at $1.09 on the TSX.
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.
