The funds raised will be used for the continued development of GoviEx’s projects, bringing the company closer to its target of becoming a uranium producer by 2025, it said. Its main asset is the fully permitted Madaouela project in north-central Niger, one of the most significant areas of producing sandstone-hosted uranium.
The Madaouela property currently hosts five deposits that have been developed to a high level of confidence, with total uranium oxide resources of 111 million lb. in the measured and indicated category and 28 million lb. inferred. GoviEx has an 80% interest in the project, with the remaining 20% held by the Niger government.
In September 2022, a positive feasibility study was released for the Madaouela project, outlining a self-sustaining open pit operation that would produce over 50 million lb. of uranium oxide over 19 years. It has an after-tax net present value (at 8% discount) of $140 million and an internal rate of return of 13.3%.
Following the latest project milestone, GoviEx will now focus on progressing offtake and debt financing options for Madaouela. The FS report estimated the project’s initial capital costs at $343 million.
Proceeds of the latest financing will also be used for the Muntanga project in Zambia, where GoviEx aims to complete an FS by the end of 2023, and the continued exploration of its earlier-stage Falea project in Mali.