Canada-based Global Atomic says debt funding now ‘unlikely to come from US’
Niger’s mines minister Ousmane Abarchi has said the government of Niger strongly supports Canada-based Global Atomic and has no intention of nationalising the company’s Dasa uranium project.
Global Atomic said in a statement that it had held several important meetings with Abarchi during a mining conference in Africa, where the minister was promoting his country to attract potential investors interested in the sector.
It said, however, that debt funding needed to advance the project was unlikely to come from the US and talks on financing were continuing, including with “new parties”.
In November, Global Atomic said it had anticipated securing a project financing loan from a US development bank by early in the first quarter of 2025. The latest statement suggests this will not now happen.
Global Atomic said that in various meetings attended by Abarchi at the conference, he said Niger welcomes and encourages investment by foreign mining companies specifically including those from Canada, the US and Australia.
“Further, at the end of last week the Niger government announced plans to hold a major conference in mid-February to establish a process that will govern the transition to a democratic election,” Global Atomic said.
The company held additional meetings in Cape Town, including with new groups interested in financing the Dasa project, and with suppliers and contractors who are working with Global Atomic and Somida, Global Atomic’s Niger operating subsidiary which is part-owned by Niger’s government.
Global Atomic said plant construction at Dasa is proceeding on schedule with earthworks nearing completion and civil works underway and the concrete batch plant now under construction. The camp that will house the plant construction crew is well underway with a large percentage of housing ready for occupation.
But it said that since the inauguration of president Donald Trump, the market reaction has been that debt funding for the Dasa Project is “unlikely to come from the US”. It said: “However, these discussions continue as well as the advancement of the joint venture final documentation.
“It is important to remember that the Company has entered into off-take agreements for 8.8 million pounds U3O8 over the first seven years of the mine; 90% of which has been sold to US utilities.”
New Parties Have ‘Indicated Willingness’ To Participate
According to Global Atomic, as a result of meetings at the Africa conference, new parties have indicated a willingness to participate in the final funding solution for Dasa.
“Management is confident that these initiatives will continue to progress, and we reiterate our belief that prior to the end of Q1, 2025, further clarity can be shared with the market.”
Dasa is the highest-grade uranium deposit in Africa, surpassed only by grades found in Canada’s Athabasca Basin, and is scheduled to achieve commercial production in early 2026.
While the Nigerien government said to have pledged its support for the Dasa project, other uranium developers in Niger faced major setbacks this past summer.
In June, Niger’s ruling military junta, which came to power following a coup in July 2023, revoked the operating licence of French company Orano at the Imouraren mine, which sits on one of the biggest uranium deposits in the world.
In July, Canada-based GoviEx Uranium said the junta had withdrawn its licence for the Madaouela uranium mine, dealing a major blow to the development of one of the world’s largest uranium projects.
The coup led the US to suspend government funding for Dasa. Still, Global Atomic managed to raise CAD15m ($10.5m, €10.1m) in January and CAD20m in July by selling stock.
