GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) said potential lenders have begun due diligence on its Madaouela uranium project.
Sustainability experts SLR Consulting have been appointed by lenders to carry out the due diligence, which will evaluate environmental and social risks and ensure compliance with relevant regulations and international standards to meet lender requirements for project financing.
Vancouver-based GoviEx pointed out that it has expressions of interest of more than US$200 million for project-related debt finance, including from government-backed export credit agencies and development finance institutions, as well as commercial banks.
The detailed due diligence stage is expected to take several months.
Having published a feasibility study for the Niger-based project in late 2022, the company said it has engaged with a number of lenders since, and recently noted that it maintains necessary permits for its operations in the country and has a strong partnership with the government, which has a 20% interest in Madaouela.
Chief executive officer Daniel Major said today: "Madaouela is a long-life project with solid economics, underpinned by a strong uranium market. Whilst we are monitoring the current political situation in Niger, we believe in the potential of the country and its people and remain dedicated to contributing positively to its socio-economic development.
"We are also pleased to commence environmental and social due diligence as required by our potential lenders, which is a positive step towards potentially securing debt financing for the development of Madaouela, which holds one of the largest known uranium resources in the world."
He pointed out that in total GoviEx has two uranium projects nearing development and a Zambian project also progressing, with feasibility study results expected in the second half of this year.
"That, coupled with a strong market, puts us in an advantageous position, setting the stage for potential significant growth opportunities and enhanced shareholder value in the near future."