TSX- and OTQCB-listed GoviEx Uranium has announced that lender due diligence for the Madaouela uranium project, in Niger, has begun, with the appointment of consulting firm SLR Consulting acting on behalf of prospective lenders. 

The due diligence will evaluate environmental and social risks and ensure compliance with relevant regulations and international standards to meet lender requirements for project financing. 

GoviEx said on March 4 that it had received expressions of interest for more than $200-million in project-related debt finance. Prospective financiers include government-backed institutions, such as export credit agencies and development finance institutions, as well as commercial banks. 

The company announced the results of the Madaouela feasibility study on September 20, 2022, and has said it remains committed to moving ahead with project financing, citing continued engagements with several lenders. 

“While we are monitoring the current political situation in Niger, we believe in the potential of the country and its people and remain dedicated to contributing positively to its socioeconomic development. 

“We are also pleased to commence environmental and social due diligence as required by our potential lenders, which is a positive step towards potentially securing debt financing for the development of Madaouela, which holds one of the largest known uranium resources in the world,” GoviEx CEO Daniel Major said.

GoviEx has two uranium projects nearing development. The company’s other project, the mine-permitted Muntanga project in Zambia, is also progressing ahead, with feasibility study results expected in the second half of this year. 

“That, coupled with a strong market, puts us in an advantageous position, setting the stage for potential significant growth opportunities,” Major said. 

GoviEx is continuing to advance due diligence with a select group of lenders. The detailed due diligence stage is expected to take several months.