TSXV-listed GoviEx Uranium has garnered interest totalling US$220 million of senior debt financing for the construction of the Madaouela uranium project in Niger.

“The level of interest shown by the Export Credit Agencies and the banks to provide financing accretes confidence in the Madaouela project,” comments GoviEx Uranium executive chairman, Govind Friedland.

“We will now proceed to the detailed due diligence phase with the various groups, while at the same time moving forward on the other parts of our four-stage strategy.”

The board of directors of GoviEx Uranium is reviewing the expressions of interest received and will seek to enter into discussions with the lenders, in order to determine the appointment of mandated lead arrangers to execute the project debt financing of the Madaouela project in Niger.

Key conditions from potential lenders include, as is standard for project debt financing, the following:

  • Release of bankable feasibility study for the Madaouela project, following GoviEx Uranium’s continued optimisation work
  • Long-term off-take contracts in place from creditworthy nuclear utility counter-parties
  • and, export credit agency insurance cover being in place, based on the nationality of either the off-take and/or procurement counter-parties.

The expressions of interest remain subject to final due diligence, credit committee and board approvals, and negotiation of final loan documentation.

The GoviEx Uranium Madaouela project is situated southeast of the mining town of Arlit, and the Marianne-Marilyn deposit is located approximately 9 km from Arlit.

The land surface of the tenement forms a rectangle of less than 250 km2.

The proximity of the town of Arlit and Akokan are an asset for Madaouela permits.

The towns have over 160 000 people supporting local mining operations with airports, drilling companies, electricity, potable water and a hospital.

Arlit is connected to the Southern part of Niger through the so-called “uranium-highway” through Agadez and Tahoua to Niamey, the Niger capital further south.

A power line connects the town to the Sonichar coal-fired power station located North of Agadez.

Feature image credit: Wikimedia Commons