GoviEx Uranium (GXU.V) has entered into an agreement with the Republic of Niger on a framework to develop the Madaouela uranium project in the country. Niger will obtain a first 10% free carried interest which is quite common in Africa) and will receive a second 10% interest (for a combined 20% stake) by forgiving GoviEx the 7M EUR permit payment and settling the $6.6M tax dispute that has been going on for a few years. The only caveat here is that the Republic of Niger has accepted the deferral of the mine permit payment by up to three years (but not longer) after the incorporation of a Niger subsidiary and the moment GoviEx secures construction funding for Madaouela (which hopefully will be before the 3rd anniversary of the incorporation of the subsidiary).

There also are some elements to GoviEx’ benefit as Niger has confirmed it will expand the mining permit to include an additional 6 million pounds in the measured and indicated resource categories on the Miriam zone. Additionally, Niger has agreed to issue new exploration permits for the other parts of the Madaouela project, valid for a period of 9 years.  

Disclosure: The author has no position in GoviEx Uranium.

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