GoviEx Uranium Inc. has received a letter signed by Hassan Braze Moussa, Minister of Mines, Republic of Niger, supporting a commercial framework reached between GoviEx and the government of Niger during previously held high-level meetings. The support letter further directs GoviEx and the respective Ministry of Mines representatives to work together to finalize and document these commercial understandings, the intention of which is to rapidly progress GoviEx’s flagship Madaouela uranium project in Niger.
GoviEx Uranium Inc. has received a letter signed by Hassan Braze Moussa, Minister of Mines, Republic of Niger, supporting a commercial framework reached between GoviEx and the government of Niger during previously held high-level meetings. The support letter further directs GoviEx and the respective Ministry of Mines representatives to work together to finalize and document these commercial understandings, the intention of which is to rapidly progress GoviEx’s flagship Madaouela uranium project in Niger.
GoviEx’s executive chairman, Govind Friedland, commented: “This is the culmination of more than 12 years of relentless work and millions of man-hours by GoviEx management and our Nigerian community. It takes time to get things done in a responsible, sustainable and professional manner. We welcome this meaningful partnership with our host government and the people of Niger. Through these series of agreements, the company and the Niger government are laying the foundation necessary to develop the Madaouela project in a fair and equitable way for the long-term benefit of all stakeholders, and we are grateful for the support of all who have contributed to our success.”
Mr. Moussa noted the importance of continuing to develop Niger’s mineral resources in partnership with the investment community, declaring, “Niger is a country with many mining investment opportunities and economic, social and political conditions that are conducive to the pursuit of development of a sector considered strategic by the Niger government.” He added, “The government has instituted a mining policy aimed at a mutually beneficial balance while safeguarding the interests of the nation and investors.”
The key commercial terms now agreed in principle between the government and GoviEx will need to be finalized in definitive agreements and remain subject to government, GoviEx board of directors and other regulatory approvals. Notwithstanding, a summary of these key terms included in the support letter are listed as follows:
- The government will acquire a 10-per-cent working interest in the Madaouela project, in addition to its 10-per-cent free carried interest provided under the 2006 Niger mining code.
- The government will purchase this additional 10 per cent by electing to convert approximately $14.5-million (U.S.) of requested payments comprising the final seven-million-euro acquisition payment and settlement of previously challenged area taxes ($6.6-million (U.S.)) between GoviEx and the government related to the Madaouela project. Following finalization of this transaction, the company will be effectively free of debt.
- Following conversion, GoviEx will also enjoy a tax abatement period up through to successful project financing for mine construction and project development, the terms of which will be more fully described in definitive documentation.
- GoviEx will further retain a right of first refusal to acquire the government’s 10-per-cent working interest in the Madaeoula project on any proposed sale by the government.
- GoviEx’s existing mining permit (the Madaouela 1 mining permit) will be expanded to include previous mineral resources discovered by GoviEx in the Agaliouk permit.
- The expansion of the Madaouela 1 mining permit will add a further 5.96 million pounds U3O8 (triuranium octoxide) in the measured and indicated categories.
- GoviEx will be granted renewed nine-year permit terms for its Madaouela 2, 3 and 4 and Anou-Melle exploration permits, which had reached the end of their exploration periods under the 2006 Niger mining code. These renewals allow GoviEx to maintain its highly prospective mineral exploration potential alongside its mine development program for the Madaouela project.
The commercial understandings agreed in the support letter further positions GoviEx to advance the Madaouela project as a fully permitted uranium project, currently with 60.54 million pounds U3O8 in total probable mineral reserves and a predicted 21-year mine life. GoviEx believes the factors influencing the uranium market fundamentals and the uranium price are improving and continues to prioritize 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 is also conducting a non-brokered private placement offering of up to approximately 15,882,353 units at a price of 17 cents per unit is being conducted, is nearly fully subscribed, and expected to close on or about April 12, 2019. Each unit consists of one Class A common share and one Class A common share purchase warrant of the company. Each warrant shall entitle the holder to purchase one Class A common share of the company for a period of 36 months at 21 U.S. cents during the first 12-month period, at 24 U.S. cents during the second 12-month period and at 28 U.S. cents during the third 12-month period. A cash finder’s fee of 6 per cent may be payable on all or a portion of the private placement. All securities issued under this private placement will be subject to a hold period of four months plus one day from the date of issue.
Completion of the private placement will be subject to regulatory approvals, including the final approval of the TSX Venture Exchange.
The net proceeds from the private placement will be used to finance continued exploration and development activities on the company’s assets, working capital, and for general corporate purposes.
Qualified persons
The scientific and technical information disclosed in this release has been reviewed, verified and approved by Dr. Rob Bowell, a chartered chemist of the Royal Society of Chemistry, a chartered geologist of the Geological Society of London, and a fellow of the Institute of Mining, Metallurgy and Materials, who is an independent qualified person under the terms of National Instrument 43-101 for uranium deposits.
About GoviEx Uranium Inc.
GoviEx is a mineral resource company focused on the exploration and development of uranium properties in Africa. GoviEx’s principal objective is to become a significant uranium producer through the continued exploration and development of its flagship mine-permitted Madaouela project in Niger, its mine-permitted Mutanga project in Zambia and its other uranium properties in Africa.
Source: Stockwatch
