GoviEx Uranium Shifts Focus to Zambia Amid Niger Setback
TSX-V-listed GoviEx Uranium has announced its intention to fight for its rights at the Madaouela project in Niger while redirecting efforts towards its Muntanga project in Zambia.
Nearly two weeks ago, the Nigerien government informed GoviEx that it no longer holds rights over the mining permit perimeter for its Madaouela project, which has reverted to the public domain.
“This decision came despite our very best efforts spanning almost two decades, transforming Madaouela from an exploratory venture into one of the world’s largest-known uranium deposits.
Since acquiring our license, we have navigated through extreme uncertainty and withstood periods of historically low uranium prices,” says GoviEx.
The company notes it was prepared to escalate development, having secured expressions of interest totaling $200 million for project-related debt financing in 2023.
It also began construction of an access road, prepared for initial groundworks, terracing, and exploitation, and received its environmental and social impact assessment certificate.
“The decision to withdraw our mining rights is especially perplexing given the implications for any future developers, who would effectively need to start from scratch,” the company states. GoviEx further argues that the decision did not follow the withdrawal procedure prescribed under the applicable mining code.
The company asserts it is prepared to pursue all necessary legal avenues to defend its rights and protect its investments. It has formally written to the Ministry of Mines to contest the decision and seek an amicable solution as per Niger’s Mining Convention.
“We are starting the process to secure independent assessments of damages related to the withdrawal of our mining rights,” says GoviEx.
Meanwhile, GoviEx notes that the demand for clean energy, coupled with uncertainty regarding energy security and a structural deficit in uranium supply, means that the uranium market will continue to require new projects. Although uranium is abundant, permitting a uranium mine can take decades.
“Fortunately, our Muntanga project in southern Zambia has all its main permits, and we are reinvigorated in our focus to publish its feasibility study later this year.
Muntanga is a project with massive potential, poised to become a cornerstone of our company. We have been working to develop Muntanga since 2016,” GoviEx notes.
“Zambia is a democratic, stable, pro-mining country keen to see the development of new projects, and we look forward to developing it. Going forward, we will not be defined by the setback in Niger but by our capacity to adapt and thrive.
Thank you for standing with us as we turn these challenges into stepping stones towards a prosperous future,” GoviEx states in a July 17 letter to shareholders.
