HomeBusiness and policyGlobal Atomic finalises letter of intent for 3rd supply agreement

Global Atomic finalises letter of intent for 3rd supply agreement

Global Atomic has finalised a LOI for the sale of uranium from its Dasa Project in the Republic of Niger. This is the third such agreement signed by the company and brings its current contracted volume close to 1.5 million pounds U3O8 per annum over Dasa’s initial five years of operation.

Global Atomic highlights

  • The LOI represents the supply of up to 3.5 million pounds U3O8 within a multi-year delivery window beginning in 2026, representing about 14% of Dasa’s annual adjusted Phase 1 production over the period. The total offtake now contracted is approximately 30% of Dasa’s initial five-year scheduled production.
  • Considering the considerable improvement in market conditions, the pricing formula applied in this agreement captures firming fundamentals.
  • The revenue potential of this award at current prices, valued at approximately US$250 million in nominal terms, reflects the company’s continued strategy of establishing sales contracts in support of Tier 1 global utilities at volumes sufficient to underwrite debt financing, thereby limiting equity dilution as the Dasa operation moves into production.
  • Under this agreement, Global Atomic is pleased to provide a fuel solution for defined North American utility demand, at a time of increasing supply uncertainty. 
  • The award is subject to the successful conclusion of a purchase-sale contract, which Global Atomic will now progress.

Global Atomic President and CEO, Stephen G. Roman commented, “This award adds to the two off-take arrangements we announced in 2022, both of which have been successfully converted into purchase-sale contracts. 

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“The timing of this agreement demonstrates the credibility that Dasa is building within the uranium market while the company manages its project development amid recent political restructuring in Niger. 

“Global Atomic was heartened to see the tremendous support of the Dasa Project recently demonstrated at the 2023 WNA Conference in London which is resulting in more offtake discussions currently underway.”

“Nuclear power is vital to satisfy the drive for energy independence across the globe and the overwhelming desire for low-carbon base load power.”

“Our Dasa Operation has a long-life expectancy, with the current 12-year Phase 1 Plan representing approximately 20% of the known deposit.  The revision to the Phase 1 Feasibility Study due in the first half of 2024 is expected to double Dasa’s mineable Reserves and extend Phase 1 significantly.”

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