A rig at the Dasa project
TSX-listed Global Atomic is on the verge of securing financing for the development of the Dasa uranium project in Niger. Among the approaches is a proposed $295-million debt financing led by a US development bank that is progressing towards approval.
In addition to debt financing, Global Atomic has received multiple offers for pre-payments on uranium delivery contracts, strategic equity investment, minority joint venture investments at project level and equity financing from various institutions and private equity firms.
Global Atomic says it actively evaluating these funding options to determine the optimal funding structure.
The US development bank is finalising documentation for submission to its credit committee, with a decision expected in mid-July. A final decision is expected in September.
Final approval of the debt facility by the US development bank will cover 60% of the project funding and 50% of any cost overruns. The company has already invested about $90-million of the required equity for Dasa’s development.
“We are excited with the prospect of partnering with the US development bank. We believe that the advancement of the Dasa project aligns with the strategic priorities of the US government and its efforts to secure uranium supply and reduce dependence on Russia.
“We believe the US government recognises the significance of the Dasa project and its meaningful contribution to global uranium supply diversification,” posits Global Atomic president and CEO Stephen G. Roman.
Roman, CFO Rein Lehari, and chief technology officer Dr Santiago Faucher recently visited Niger, meeting with several government officials, including the Mines Minister Ousmane Abarchi.
Abarchi has confirmed his support for Dasa and offered his office’s assistance to streamline administrative bottlenecks and aid facilitate the timely importation of supplies and equipment.
Roman welcomed the key focus on logistics, especially given the closure of the Benin border, which has impacted access to the port of Cotonou. "The government assistance offered by the Mines Minister to help expedite our inbound shipments is very much appreciated," he said.
Executives also visited the Dasa site to review the progress of the underground development, as well as the earthworks being undertaken to prepare for the installation of the processing plant and the associated camp for the construction crew.
They also witnessed the safety measures and practices of the SOMIDA team, which has now achieved 675 days without a lost-time injury.
The SOMIDA board of directors appointed Abdourazakou Abdou Moumouni as the new chairperson, representing the office of the President. Moumouni, an experienced mining engineer, previously worked at Orano Mining’s Cominak and Somair mines.