GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) has outlined its path forward following a recent setback that saw the government of Niger revert its mining license for the Madaouela project back to the public domain.
Addressing shareholders in a letter, executive chairman Govind Friedland said that the company plans to defend its rights to the project in Niger while shifting its near-term focus to developing the Muntanga project in Zambia, which is already permitted.
“Adversity often paves the way for reflection and re-evaluation. Whilst we are going to continue to fight for Madaouela, the current situation also represents a unique opportunity to concentrate our efforts on Muntanga, to drive the growth and success of our operations,” Friedland wrote in the letter.
“Muntanga is a project with massive potential, poised to become a cornerstone of our company.”
GoviEx was informed nearly two weeks ago that it no longer has rights over the perimeter of the mining permit for Madaouela, which had evolved into one of the world's largest known uranium deposits.
Friedland wrote of the perplexity and disappointment surrounding the decision, especially considering the extensive groundwork already completed.
"The necessity to conduct a new drilling campaign, environmental assessments, social studies, metallurgical test work, etc. - tasks into which we have already invested millions, will inevitably lead to significant project delays," he noted.
The decision, he added, is contrary to the government's stated objectives for rapid development and economic progress in the region.
GoviEx has formally contested the decision with the Ministry of Mines and is prepared to pursue all necessary legal avenues to defend its rights. "We are fully prepared to pursue all necessary legal avenues to defend our rights and protect our investments," Friedland asserted.
"Going forward, we will not be defined by this setback but by our capacity to adapt and thrive. Thank you for standing with us as we turn these challenges into stepping stones towards a prosperous future."
The full shareholder letter is available here.