GoviEx Uranium Enters LOI For Strategic Roadmap On Madaouela Project Dispute
GoviEx Uranium (TSXV: GXU) might have hope in recovering its Madaouela Project in the Republic of Niger. The company this morning indicated it has entered into a letter of intent with the Republic to a structured roadmap that outlines a plan for negotiations over the ongoing dispute related to the project.
The LOI is said to formalize recent discussions held between government officials and GoviEx in Cape Town, with both parties said to have temporarily suspending ongoing arbitration proceedings under the ICSID Convention. Those proceedings are to remain suspended while talks remain ongoing in hopes of reaching a resolution or settlement.
The discussions relate to the Republic of Niger’s decision back in July 2024 to suspend GoviEx’s mining rights for the Madaouela project, following the failure of the company to begin mining operations by July 3, 2024. The project contains 100 million pounds of measured and indicated U3O8, along with a further 20 million pounds of inferred U3O8.
A feasibility study completed in September 2022 outlined an after tax net present value of $376 million along with an IRR of 21% based on $80 per pound uranium. The study envisioned a 19 year mine life under an operation that would produce 2.67 million pounds of uranium annually.
GoviEx Uranium last traded at $0.04 on the TSX Venture.
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