GoviEx Uranium has seen a significant boost in its share price following the signing of a letter of intent with the Republic of Niger, aiming to resolve the ongoing dispute over the Madaouela uranium project. The letter outlines a structured framework for negotiations, with both parties working toward a mutually acceptable solution.
Under the agreement, GoviEx has temporarily suspended its arbitration proceedings under the ICSID Convention while the dialogue continues. However, the company acknowledged that there is no certainty the negotiations will result in a final agreement.
Shares of GoviEx surged by 25%, reaching C5¢ per share, giving the company a market capitalization of C$40.8 million.
The dispute began when Niger’s military government revoked GoviEx’s permit for the Madaouela project in July 2024, citing the company’s failure to meet the conditions set by the new regime. GoviEx has been working on the project since 2007 and had an agreement in place with the previous government. In response, GoviEx filed for international arbitration through the World Bank’s International Centre for Settlement of Investment Disputes.
Madaouela is considered one of the world’s largest uranium deposits, capable of supporting a 19-year operation producing 50.8 million pounds of uranium oxide. The project was expected to commence production in 2025, contingent on financing, with over $200 million in funding interest received over the past year.
The Madaouela project is one of several high-profile uranium projects that Niger’s new government has revoked since taking power in mid-2023, with another project, Imouraren, also being affected.
