Toronto-listed Global Atomic has formalised its June 2022 letter of intent by signing a definite agreement with a major North American utility for the procurement of uranium from the Dasa project, in Niger.
The agreement represents the supply of up to 2.1-million pounds U3O8 within a multi-year delivery window beginning in 2025, representing about 7% of Dasa's yearly production over the period with a revenue potential of more than $110-million in real terms.
Early this year, Global Atomic formalised a similar agreement with another major North American utility for the procurement of Dasa's uranium, representing the supply of 2.4-million pounds U3O8 over a six-year period starting in 2025, representing a revenue potential of $140-million in real terms.
In total these two agreements represent revenue potential of more than $250-million.
"These agreements to supply international electric utilities are important milestones for our company that provide confirmation to our banks, shareholders and the government of Niger that we have established a guaranteed revenue stream for Dasa. This quarter we are actively in discussions with other utilities for similar agreements with the pre-production intent of signing sufficient volume to cover Dasa's cost of production,” said Global Atomic president and CEO Stephen Roman.