Further to its news release of April 8, 2019, GoviEx Uranium Inc. has, through its wholly owned subsidiary, GoviEx Niger Holdings Ltd., entered into definitive agreements with the Republic of Niger to finalize the commercial terms to progress GoviEx’s flagship Madaouela uranium project in Niger.
“On behalf of all GoviEx stakeholders, we warmly welcome the state’s deepened commitment for the joint development of the Madaouela project. Today’s announcement marks a major milestone paving the way forward to further develop Madaouela with our Nigerian partners,” said chairman Govind Friedland.
“We believe the outlook for the uranium market is positive. The finalization of the agreements represents a key step for GoviEx and Niger as we further develop the mine-permitted Madaouela project and it continues to illustrate the constructive environment that GoviEx has experienced operating in Niger since 2007. Our work on the feasibility study continues as we focus on improving the project economics with confirmation test work currently under way targeting the reduction of operating and capital costs,” noted chief executive officer Daniel Major.
The key commercial terms covered by the signed definitive agreements between the state and GoviEx are summarized below:
- A Nigerian operating company to be named Compagnie Miniere Madaouela SA is to be incorporated by the company into which the Madaouela I mining permit is to be transferred.
- Pursuant to the mining code the state is to receive a 10-per-cent free carried interest in the capital of Madaouela mining company.
- The state is to receive an additional working interest of 10 per cent in exchange for approximately $14.5-million (U.S.) of claims due by the company to the state comprising the final seven-million-euro Madaouela I mining permit acquisition payment and settlement of previously challenged three years of area taxes ($6.6-million (U.S.)) between the company and the state related to the Madaouela project. The company is to receive a final, complete and unconditional release without reserves in respect of the debt, upon the transfer of the additional working interest.
- The state has agreed that the payment of surface rights required under the Niger Mining Code with respect to the Madaouela I mining permit shall be deferred, without interest, penalties or fees, from the period commencing Jan. 1, 2019, until the earlier of the date GoviEx closes a financing for the construction of a mine for the Madaouela I mining permit or three years from the incorporation of the Madaouela mining company.
- The state has agreed that the Madaouela I mining permit will be expanded to include the additional 5.96 million pounds (Mlb) triuranium octoxide in the measured and indicated categories associated with the Miriam uranium deposit within the Agaliouk exploration permit that form part of the greater Madaouela project (1). In addition, the state has confirmed the environmental and social impact assessment certificate for the Madaouela I mining permit also covers the Miriam deposit.
- The state has agreed to issue new nine-year exploration permits for the areas previously covered by Madaouela 2, Madaouela 3, Madaouela 4 and Anou Mele exploration permits, as well the as the renewal of the Eralrar exploration permit, in order to allow GoviEx to continue its exploration activities on the Madaouela project.
Each of the steps described above will now be undertaken by GoviEx and the state to ensure all required regulatory requirements are met, including but not limited to TSX Venture Exchange acceptance, as may be required. GoviEx will provide further update upon completion of the various matters described above.
(1) An independent National Instrument 43-101 technical report was prepared for the Madaouela project in 2015 to a prefeasibility level of confidence. The report titled “An Updated Integrated Development Plan for the Madaouela Project, Niger” has an effective date of Aug. 11, 2015, and a revision date of Aug. 20, 2015, and is available at GoviEx’s profile.
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 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.