- Resource company, Global Atomic (TSX:GLO) has completed a non-brokered private placement for a total proceeds of C$3,323,000.
- The company issued just over 5.5 million units at a price of $0.60 each
- Each of these units consisted of one common share in the company and one common share purchase warrant
- The warrants are exercisable at a price of $0.85 for a period of two years from today
- The proceeds will be used to fund technical work in support of mine permits and feasibility work
- Global Atomic (GLO) is currently down 6.67 per cent, with shares trading at $0.56 and a market cap of $81.44 million
Global Atomic (TSX:GLO) has announced the completion of a non-brokered private placement for total proceeds of C$3,323,000.
Headquartered in Toronto, the company is focused on both high-grade uranium development and cash-flowing zinc concentrate production. Its uranium business includes six permits in the Republic of Niger.
Global Atomic’s zinc business, on the other hand, holds a 49 per cent stake in a Turkey-based facility, which converts Electric Arc Furnace Dust into a high-grade zinc oxide concentrate. This is then sold to zinc smelters around the world.
Under the terms of the placement, the company issued a total of 5,538,335 units, each at a price of $0.60. These units were comprised of one common share in the company and one common share purchase warrant.
The warrants will be exercisable over the next 24 months, each at a price of $0.85. However, should Global Atomic’s shares trade above $1.10 on the Toronto Stock Exchange for 20 consecutive trading days, the company may elect to bring the expiration date forward.
Global Atomic says that the proceeds will be used to fund technical work in support of mine permits and feasibility work for its Dasa Property in Niger. A portion of the proceeds will also go towards general working capital purposes.
Stephen Roman, President and CEO of Global Atomic, said the additional funds will help to offer greater operational stability.
“Due to COVID-19 and uncertain markets, we felt it prudent to bolster our working capital in order to complete the necessary technical work required for our Dasa Mining Permit Application.
“We expect business to return to normal operations in due course and are fortunate to have a very supportive shareholder base and management team who have all participated in this financing,” he added.
Global Atomic (GLO) is currently down 6.67 per cent, with shares trading for $0.56 at 11:23am EDT.