Canadian junior GoviEx and the government of Niger have agreed on a framework to jointly develop the Madaouela uranium project, in terms of which the government will acquire an additional 10% working interest.
The 10% stake in the uranium project is in addition to the government’s 10% free-carried interest provided for under the 2006 Niger mining code.
GoviEx explained on Monday that the government would purchase the 10% by electing to convert about $14.5-million of the requested payments, comprised of the final €7-million acquisition payment and the settlement previously challenged taxes of $6.6-million.
Following this transaction, GoviEx would be effectively debt-free. It would also retain a right of first refusal to acquire the government’s 10% working interest in Madaouela.
The government further agreed to expand the Madaouela permit to add a further 5.96-million pounds of uranium oxide in the measured and indicated categories, while it would grant the company renewed nine-year permits for its other exploration permits.
The Madaouela project currently has probable reserves of 60.54-million pounds and is expected to operate for 21 years.
“GoviEx the factors influencing the uranium market fundamentals and the uranium price are improving and continues to prioritise completion of a feasibility study, and negotiations with debt providers and off-takers interested in the company’s long-term uranium development project,” the company stated.
It also announced a nonbrokered private placement of up to 15.88-million units at C$0.17 a unit. The proceeds would be used for exploration and development activities.