GoviEx Uranium Inc (TSX-V:GXU, OTCQX:GVXXF) said it has signed a letter of intent with the Republic of Niger to establish a structured roadmap for resolving the ongoing dispute over the Madaouela uranium project.
As part of the process, GoviEx has agreed to temporarily suspend arbitration proceedings under the ICSID Convention while negotiations continue within the agreed framework.
The suspension will remain in effect until a resolution is reached or if the parties determine that no settlement is possible, according to a statement from GoviEx.
In the statement, GoviEx said it welcomed Niger’s engagement in the negotiations and remains committed to a resolution but noted there is no certainty the discussions will result in a binding agreement. Arbitration could resume if no definitive settlement is reached.
The agreement comes after GoviEx was informed by Niger’s government in mid-2024, via a letter from the Minister of Mines, that it no longer has rights over the perimeter of the Madaouela mining permit. The company said the decision did not follow the withdrawal procedure outlined in the country’s mining code.
Before the dispute, GoviEx had been advancing the project’s development, securing expressions of interest exceeding $200 million in project-related debt financing, updating its Environmental and Social Impact Assessment, and beginning early-stage infrastructure work, including an access road.
The Madaouela project hosts one of the world's largest uranium resources, with 100 million pounds of U₃O₈ in measured and indicated mineral resources, plus an additional 20 million pounds in inferred resources. At a uranium price of $80 per pound U₃O₈, the project has an estimated post-tax net present value (NPV) of $376 million and an internal rate of return (IRR) of 21%.
Madaouela is expected to produce a total of 50.8 million pounds of U₃O₈ over its 19-year mine life, averaging 2.67 million pounds annually.