TSX-V-listed GoviEx Uranium says that, while it plans to fight for its rights at the Madaouela project, in Niger, the difficulties faced in that country present it with a unique opportunity to concentrate its efforts on its Muntanga project, in Zambia.

The company reiterates that it was, nearly two weeks ago, informed by the Nigerien government that it no longer has rights over the perimeter of the mining permit for its Madaouela project, which reverted back to the public domain.

“This decision came despite our very best efforts spanning almost two decades, which have transformed Madaouela from an exploratory venture into one of the world’s largest-known uranium deposits.

“Since acquiring our licence, we have navigated through extreme uncertainty and withstood periods of historically low uranium prices,” says GoviEx.

The company notes that it was ready to escalate development, having secured expressions of interest totalling $200-million for project-related debt financing in 2023.

The company says it also began construction of an access road, prepared for initial groundworks, terracing and exploitation, and that it had received its environmental- and social-impact assessment certificate.

“The decision to withdraw our mining rights is especially perplexing given the implications for any future developers, who would effectively need to start from scratch,” it states.

GoviEx further argues that the decision to withdraw its mining rights did not follow the withdrawal procedure prescribed under the applicable mining code.

The company asserts that it is prepared to pursue all necessary legal avenues to defend its rights and protect its investments, and notes that it has formally written to the Ministry of Mines to contest the decision and to initially seek an amicable solution, as per Niger’s Mining Convention.

“We are starting the process to secure independent assessments of damages related to the withdrawal of our mining rights,” says GoviEx.

Meanwhile, the company says the need for clean energy, coupled with uncertainty regarding energy security and a structural deficit in uranium supply, means that the uranium market will continue to require new projects to fulfil demand.

While uranium is an abundant metal, the company explains that permitting a uranium mine can take decades.

“Fortunately, our Muntanga project in southern Zambia has all its main permits and we are reinvigorated in our focus to publish its feasibility study later this year.

“Muntanga is a project with massive potential, poised to become a cornerstone of our company. We have been working to develop Muntanga since 2016,” GoviEx notes.

“Zambia is a democratic, stable, pro-mining country which is keen to see the development of new projects – and we look forward to developing it.

“Going forward, we will not be defined by the setback [in Niger] 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,” GoviEx states in a July 17 letter to shareholders.