GoviEx’s share price drops as Niger uranium project deadline looms

The government in Niger, which took power in a coup last July, has raised concerns for Vancouver-based uranium company GoviEx. The government holds a 20% stake in the Madaouela project, the continent’s biggest uranium producer after Namibia. GoviEx expressed worries that the junta may revoke its mining permit, putting the project at risk.

In response, GoviEx stated its commitment to developing the project and working with the Niger government to find a solution that complies with the law and protects the company’s rights. The company is currently seeking over $200 million in debt financing for the estimated $343 million project. Lenders are conducting due diligence on funding as GoviEx moves forward with initial site work for the open pit and underground mine, which is expected to have a lifespan of over 20 years.

The Madaouela project is crucial for Niger, with forecasted annual output potentially propelling the country to a higher rank among the world’s uranium producers. The feasibility study for the project has revealed significant reserves of uranium oxide and molybdenum, with production estimated at 50.8 million lb. of U3O8 over the mine’s lifespan.

GoviEx’s executive chairman, Govind Friedland, emphasized the company’s commitment to working with governments and local communities to ensure mutually beneficial outcomes. In addition to the Madaouela project, GoviEx also has the Muntanga uranium project in Zambia and recently sold its Falea project in Mali.

Despite the uncertainties surrounding the government’s potential actions, GoviEx remains dedicated to pushing forward with the Madaouela project and continuing its contributions to the global uranium market.