Following the announcement of the Madaouela uranium project’s feasibility study results on September 20 last year, uranium mining company GoviEx Uranium has completed the first phase of developing a financing solution for the project.
GoviEx has been working with its financial adviser Endeavour Financial to develop the optimum financing solution for the mine-permitted project, in Niger.
The initial phase involved Endeavour reviewing the feasibility study technical and financial information and issuing a project marketing document to prospective financiers to solicit interest in providing project-related debt financing.
This initial phase is now complete and has resulted in a preliminary shortlist of about 20 institutions that will now move forward with the detailed due diligence phase.
Prospective project financiers include a mix of commercial banks, export credit agencies, development finance institutions, equipment suppliers and alternative finance providers.
“We view the initial results from the project financing progress with Endeavour as very encouraging, which we believe underlines the positive technical and financial results from the feasibility study and the strong potential to source debt financing for the Madaouela project,”GoviEx CEO Daniel Major said on January 9.
He noted that prospective financiers would now be provided with additional information relating to the company and project through a virtual data room, with the objective of obtaining formal expressions of interest (EOIs).
Following receipt of EOIs, Endeavour and GoviEx intend to select a small group of preferred financiers to move forward into the detailed due diligence phase.
The project finance process is expected to take several months and is being run in parallel to discussions with utilities regarding offtake.