Nasdaq-listed Westwater Resources on Friday announced that the Turkey government had revoked the mining and exploration licences of its Temrezli and Sefaatli uranium projects.
The exploration and development company said that it was investigating the legality of the development and that it had 60 days to respond under Turkish law.
It is understood that the government has offered compensation.
“We plan to work with the relevant authorities to define a proper path forward over the coming weeks. The Republic of Turkey has been a supporter of both the Temrezli and Sefaatli projects for quite some time, and we therefore can expect a fair result,” Westwater president and CEO Christopher Jones said in a statement.
Westwater and its predecessor companies have been working for years to develop the Temrezli and Sefaatli projects in central Turkey, although currently low uranium prices have delayed construction. Westwater believes that higher prices forecasted in the intermediate term will make these projects important investments.