GoviEx shares jump on deal to resolve Niger dispute

GoviEx Uranium (TSXV: GXU; US-OTC: GVXXF) and the Republic of Niger are looking to end their dispute over one of the world’s largest uranium projects following the signing of a letter of intent on Monday. Shares of GoviEx jumped on the news.

In the letter, the parties have agreed to a structured roadmap detailing “a mutually acceptable plan to negotiate a resolution” to the ongoing dispute regarding the Madaouela project, GoviEx said, adding that the letter formalizes its recent discussions held with Niger during and after the 2025 Mining Indaba conference.

As part of the process, GoviEx will temporarily suspend its arbitration proceedings under the ICSID Convention while discussions continue within the agreed framework. This suspension will remain in place until a resolution is reached, or until it is determined that no settlement is possible, the company said.

In its statement, the Canadian miner said it welcomes “the Republic of Niger’s resolve to engage in dialogue and remain committed to a negotiated outcome,” adding that “however, there is no certainty that the negotiations will result in a final binding and definitive agreement.”

At end of day on Tuesday, GoviEx Uranium traded 25% higher at C5¢ apiece, for a market capitalization of C$40.8 million.

Project revoked

The dispute stems from the revocation of GoviEx’s permit for Madaouela last July after it failed to meet the mine start conditions set by Niger’s new military leaders. The company has been working on the project since 2007 and had a framework agreed with the previous regime.

Following the setback, GoviEx initiated international arbitration proceedings against Niger last December through the World Bank’s International Centre for Settlement of Investment Disputes to get the mining permit back.

Before the permit setback, GoviEx had already advanced the Madaouela project towards the feasibility stage, with a technical report confirming it as one of the world’s largest uranium resources capable of supporting a 19-year operation with total production of 50.8 million lb. uranium oxide (U₃O₈). It also estimated an after-tax net present value (at 8% discount) of $140 million and an internal rate of return of 13.3%. The initial capital cost is forecast at $343 million.

The uranium miner had initially planned to commence production in 2025, subject to financing. Over the past year, it received expressions of interest of more than $200 million in project funding.

Madaouela represents one of the few high-profile uranium projects that Niger’s new junta-led government has taken away since assuming power in mid-2023. A month before revoking the Madaouela licence, Niger also rescinded the Imouraren project permit held by French miner Orano.