GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) told investors it has been informed by the Government of the Republic of Niger via a letter from the Minister of Mines that it no longer has rights over the perimeter of the Madaouela mining permit in Niger, which is now in the public domain.
It said the decision to withdraw its mining rights does not follow the withdrawal procedure described under the applicable mining code.
“Whilst GoviEx is committed to maintaining transparency and continuing its engagement with Government officials and stakeholders, it reserves the right to challenge the decision to withdraw the mining rights before the competent national or international jurisdictions,” it said in a statement.
GoviEx believes the Government’s decision to withdraw the mining rights for the Madaouela project will have a negative impact on the economic and social development of the region.
The project was poised for development, with GoviEx in the last year receiving expressions of interest in excess of US$200 million for project-related debt finance, starting social and environmental due diligence with a prospective lender, updating its Environmental and Social Impact Assessment, commencing Front-End Engineering Designs and initial ground works, including the construction of an access road and starting exploitation.
“With a forecast initial capital expenditure of US$343 million, as well as considerable employment opportunities, the project was forecast to create up to 800 jobs over its projected 20-year mine life, with substantial royalty payments and taxes payable to the Government,” the company said.
The company continues to progress its mine-permitted Muntanga project in Zambia and is expected to publish its feasibility study in the second half of 2024.