GoviEx Uranium comments on alleged Niger mining audit

GoviEx Uranium Inc. [GXU-TSX, GVXXF-OTCQB] has issued a clarification notice, saying it wished to address recent articles published in the wider press concerning an alleged audit of the mining sector in the Republic of Niger. “This communication aims to clarify misconceptions and reassure our stakeholders and the public,’’ the company said.

The move comes after Niger temporarily suspended the granting of new mining licenses, the first step in an audit of its mining sector as it seeks to boost government revenue. Published reports say the country will take stock of existing mining licenses, according to a memo from the mining industry seen by Bloomberg news service. Details of the memo are reported in a Scotiabank investment newsletter.

“The mining sector, which also includes gold and iron ore, is an area of “national concern,” according to the government. “We’re trying to figure out who holds the mining licenses and what reforms need to be implemented in order for the state to increase its profits,” Fatimata Korgom, the deputy secretary general at the mining industry said in a voice note shared by a junta spokesman.

In its Friday press release, GoviEx said recent press reports have inaccurately suggested that the entirety of the Niger mining sector is to be subject to a new government audit. GoviEx said it has directly engaged with the author of the memo cited in these press reports and can confirm that this initiative is a response to specific issues within the gold sector, which does not impact GoviEx.

The company said it maintains necessary permits for its operations in Niger and is fully compliant with all regulatory standards. “Furthermore, the company has a strong partnership with the government, reflected in their 20% interest in the company’s Madaouela Project,’’ it said.

The clarification comes after GoviEx recently raised $13.8 million from a bought deal offering of 86.25 million units priced at 16 cents per unit.  The offering has closed after over-allotment options available to the underwriter were fully exercised.

GoviEx shares were unchanged at 18.5 cents on Friday. The shares trade in a 52-week range of 25.5 cents and 10.5 cents.

GoviEx is focused on the exploration and development of its African uranium properties. Its principal objective is to become a significant uranium producer via the continued exploration and development of its mine-permitted Madaouela project in Niger, its mine-permitted Mutanga Project in Zambia, and its multi-element Falea Project in Mali.

The company’s shareholders include Cameco Corp. [CCO-TSX, CCJ-NYSE], Denison Mines Corp. [DML-TSX], and privately-owned Ivanhoe Industries.

The Madaouela Project is located near Arlit in north central Niger, a key area for sandstone-hosted uranium deposits. The project is controlled 100% by the Nigerian mining company Compagnie Miniere Madaouela SA (COMIMA), owned 80% by GoviEx and 20% by the Government of the Republic of Niger.

Madaouela hosts 100 million pounds of U308 in the measured and indicated resource category. On top of that is an inferred resource of 20 million pounds. Feasibility results were announced on September, 2022.