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GoviEx Uranium forges ahead despite US-Niger tension

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GoviEx’s Madaouela uranium project is situated in the Agadez region in the northern part of the Republic of Niger adjacent to Orano SA’s operations of Somair and Cominak. Image credit: GoviEx Uranium (https://goviex.com/)

GoviEx Uranium forges ahead despite US-Niger tension

GoviEx has made progress at their uranium project in Niger, despite US-Niger tension.

TSX listed GoviEx Uranium has appointed engineering company SGS Bateman for the commencement of the Front-End Engineering Designs (FEED) at GoviEx’s Madaouela project in the north of Niger.

Madaouela is located in the Agadez region in the northern part of the Republic of Niger adjacent to Orano SA’s operations of Somair and Cominak.

GoviEx operates the project and holds an 80% interest of the Nigerien operating company COMIMA with the remaining 20% held by the Republic of Niger, of which 10% represents a free-carry interest.

The Republic of Niger is currently the 7th largest producer of uranium in the world and was the largest supplier of U3O8 to Europe in 2022, accounting for approximately a quarter of total imports.

Growing US-Niger tension

According to Daniel Major, CEO of GoviEx, the company is monitoring the growing tension between the US and Niger after the Niger government’s announcement that it will terminate the US-Niger military accord, which was due to expire later this year.

A report by news agency CNN states that Niger’s military government announced that it has ended an accord with the US that allowed military personnel and civilian staff from the Department of Defense to operate in Niger.

“The government of Niger, taking into account the aspirations and interests of its people, decides with full responsibility to denounce with immediate effect the agreement relating to the status of military personnel of the United States and civilian employees of the American Department of Defense in the territory of the Republic of Niger,” Niger military spokesman Colonel Major Amadou Abdramane said in a statement on national television announcing the change.

Relations between the US and Niger has deteriorated significantly since the military junta took control of the country in July 2023. The US regards the take-over as a military coup.

In the wake of the coup, the US has withdrawn most of its 1,100 troops who were stationed in Niger. According to the Pentagon, the presence of US troops in Niger is key to counter terrorism in the region.

Ground work continues despite tension

“Whilst we continue to monitor the current political situation in Niger, I am really pleased to start the development of Front-End Engineering Designs, as wells as the initial ground works at Madaouela,” says Major.

The ground works include the construction of an access road, which is planned to be followed by comprehensive site clearance and terracing, and then initial civil engineering construction.

This progression marks a significant step towards the Madaouela’s development, complementing both the initiation of lender due diligence announced earlier this month and GoviEx’s receipt of expressions of interest (EOIs) for project-related debt finance of approximately USD200-million.

Madaouela Project represents a significant investment in Niger’s economy, with an anticipated initial capital expenditure of USD343- million.

According to GoviEx Madaouela is expected to generate considerable employment opportunities with the potential of creating up to 800 jobs over its 20-year mine life and to contribute to substantial royalty payments and taxes to Niger.

“This project is more than an investment in uranium, it is an investment in the future of Niger, aiming to bring economic benefits and develop local talent that will serve the nation for years to come,” says Major.

GoviEx Uranium forges ahead despite US-Niger tension

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GoviEx Uranium forges ahead despite US-Niger tension

 

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