GoviEx Uranium Sees Nigerian Government Set Deadline For Mining To Begin At Madaouela
GoviEx Uranium (TSXV: GXU) is evidently at risk of losing its mining permit for its flagship Madaouela uranium project in Niger. The local government has provided the company with a hard deadline to commence mining operations, or risk losing the permit entirely.
The company for its part has stated that it is committed to developing the project, and is now “working with the Nigerian government towards a mutually beneficial solution” to resolve the situation. GoviEx is also in search of potential investment to expedite the development of the project.
To date, the company has reportedly received expressions of interest “in excess of USD 200 million” for debt financing for the project, with discussions said to be ongoing with both off-takers as well as potential lenders.
Capital expenditures are estimated at US$343 million for the Madaouela project, based on a feasibility study completed back in 2022 by the company. The project, based on US$70 per pound uranium, has a net present value of $199 million based on an 8% discount, and an IRR of 15.5%, before molybdenum resources are factored in.
“Since the start of our operations in Niger, we have completed an unprecedented 650,000 metre drilling campaign, all with local contractors and employees, to define the potential mineral resource there, which is now amongst the largest known resources in the world. The Company has since worked with local engineers to design a state-of-the-art open pit and underground mine that has an expected life of over 20 years and that will provide hundreds of new jobs to Nigeriens. The Company was able to do this because it cooperated with governments and worked with locals to create a mutually beneficial outcome. Our commitment to the country remains and we will use all appropriate means available to us to ensure that we continue to develop the Project,” commented Govind Friedland, Executive Chairman of GoviEx.
The Republic of Niger has indicated that mining operations must begin by July 3, 2024.
GoviEx Uranium last traded at $0.10 on the TSX Venture.
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