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Uranium developer Global Atomic has contracted nearly 1.5-million pounds a year of uranium oxide (U3O8) over the Dasa mine’s initial five years of operation, the Toronto-listed company reported on Monday, announcing a letter of intent (LoI) for its third agreement to supply a North American nuclear utility.

The company will supply up to 3.5-million pounds of U3O8 within a multi-year delivery window, beginning in 2026, representing about 14% of Dasa’s yearly adjusted Phase 1 production over the period. 

The total offtake now contracted is about 30% of Dasa’s initial five-year scheduled production.

The revenue potential of this award at current prices is valued at $250-million in nominal terms.

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

The Dasa operation has a long-life expectancy, with the current 12-year Phase 1 Plan representing about 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.

Construction began early last year and the mine is expected to be completed in 2025.