GoviEx Uranium Inc (CVE:GXU) (OTCQB:GVXXF) (FRA:7GU) has revealed, in a letter to shareholders, that despite the challenges related to the coronavirus (COVID-19) pandemic, the company improved its financial position, advanced its pipeline of uranium mine development plans, specifically in Niger, and began the assessment of its gold prospects in Mali in 2020.
GoviEx also said it expects the positive momentum of the last year to continue in 2021, fueled by the commitment to advance its mineral projects while focusing on fiscal discipline to maintain balance sheet strength.
To that end, GoviEx completed a C$8 million private placement equity financing in January 2021, which combined with the C$7.3 million it raised during 2020 is expected to fund the potential accelerated development of its mine-permitted projects as the anticipated uranium market recovery continues through 2021.
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The company noted that its financial position was further boosted by the exercise of outstanding warrants and stock options in 1Q 2021 as well as loan recovery collections in 2020.
With regards to GoviEx’s mine permitted Madaouela Uranium Project in Niger, the company released results of an updated pre-feasibility study in February, which showed a reduction in the project’s development costs and operational risk, thus improving Madaouela's bankability in the early years as well as its potential for attractive debt financing.
Meanwhile, at the company’s Falea Project in Mali, sampling of historic diamond drill cores and geophysics program on the Falea and Bala Permits has expanded the potential not only for uranium but also for gold, copper and silver. It noted that exploration work completed in 2020 shows that two major regional gold trends intersect with the Falea Project permits, there is a strong correlation between gold mineralisation the structural faults and IP anomalies, and that IP anomalies remain relatively untested.
GoviEx said it has begun a 6,000 metre air core drilling program on the Madini Permit at Falea to test the previously-noted soil anomalies, with results due in late April.
GoviEx Uranium is an Africa-focused company that aims to become a significant producer and supplier of uranium. The Vancouver-based firm has two mine-permitted projects: The flagship Madaouela project in Niger - the fourth-largest uranium-producing country in the world - and the Mutanga project in Zambia. It is also advancing the Falea project in Mali.
Contact Sean at sean@proactiveinvestors.com