GoviEx Progresses Muntanga Project Financing with Appointment of Endeavour Financial
GoviEx Uranium has appointed Endeavour Financial as financial advisor for its Muntanga uranium project in Zambia, marking the first step towards securing project financing. The project features impressive economics with a NPV8 of USD 243 million, 20.8% IRR, and 3.8-year payback period.
Muntanga is projected to produce an average of 2.2 million pounds U3O8 annually over a 12-year mine life, with production targeted to begin in 2028. The project demonstrates strong leverage to uranium prices, gaining USD 45 million in NPV for every USD 5/lb increase in U3O8 prices. The company will explore various financing options, including debt, royalties, streaming, offtake finance, and equity, prioritizing shareholder value maximization.
GoviEx Uranium ha nominato Endeavour Financial come consulente finanziario per il suo progetto minerario di uranio Muntanga in Zambia, segnando il primo passo verso la sicurezza del finanziamento del progetto. Il progetto presenta un'economia impressionante con un NPV8 di 243 milioni di USD, un IRR del 20,8% e un periodo di recupero di 3,8 anni.
Muntanga prevede di produrre in media 2,2 milioni di libbre di U3O8 all'anno per una vita mineraria di 12 anni, con l'inizio della produzione previsto per il 2028. Il progetto dimostra una forte sensibilità ai prezzi dell'uranio, guadagnando 45 milioni di USD in NPV per ogni aumento di 5 USD/libbra nei prezzi dell'U3O8. L'azienda esplorerà diverse opzioni di finanziamento, tra cui debito, royalties, streaming, finanziamenti di off-take e capitale, dando priorità alla massimizzazione del valore per gli azionisti.
GoviEx Uranium ha nombrado a Endeavour Financial como asesor financiero para su proyecto de uranio Muntanga en Zambia, marcando el primer paso hacia la obtención de financiamiento para el proyecto. El proyecto presenta una economía impresionante con un NPV8 de 243 millones de USD, un IRR del 20,8% y un período de recuperación de 3,8 años.
Muntanga se proyecta que producirá un promedio de 2,2 millones de libras de U3O8 al año durante una vida útil de la mina de 12 años, con la producción prevista para comenzar en 2028. El proyecto demuestra una fuerte sensibilidad a los precios del uranio, ganando 45 millones de USD en NPV por cada aumento de 5 USD/libra en los precios de U3O8. La empresa explorará diversas opciones de financiamiento, incluyendo deuda, regalías, streaming, financiamiento de off-take y capital, priorizando la maximización del valor para los accionistas.
GoviEx Uranium는 자금 조달을 위한 첫 번째 단계로 잠비아의 Muntanga 우라늄 프로젝트에 대해 Endeavour Financial을 재무 자문사로 임명했습니다. 이 프로젝트는 NPV8가 2억 4천 3백만 달러, 20.8%의 내부 수익률(IRR), 3.8년의 회수 기간을 기록하며 인상적인 경제성을 자랑합니다.
Muntanga는 12년의 광산 수명 동안 평균 연간 220만 파운드의 U3O8을 생산할 것으로 예상되며, 생산은 2028년에 시작될 예정입니다. 이 프로젝트는 우라늄 가격에 강력한 레버리지를 보여주며, U3O8 가격이 파운드당 5달러 오를 때마다 4천 5백만 달러의 NPV를 얻습니다. 회사는 부채, 로열티, 스트리밍, 오프테이크 금융, 자본 등 다양한 자금 조달 옵션을 탐색하고, 주주 가치 극대화를 우선시할 것입니다.
GoviEx Uranium a nommé Endeavour Financial comme conseiller financier pour son projet d'uranium Muntanga en Zambie, marquant la première étape vers l'obtention du financement du projet. Ce projet présente une économie impressionnante avec un NPV8 de 243 millions USD, un IRR de 20,8 % et une période de retour sur investissement de 3,8 ans.
Muntanga devrait produire en moyenne 2,2 millions de livres de U3O8 par an sur une durée de vie minière de 12 ans, avec un début de production prévu pour 2028. Le projet démontre une forte sensibilité aux prix de l'uranium, gagnant 45 millions USD en NPV pour chaque augmentation de 5 USD/livre des prix de l'U3O8. L'entreprise explorera diverses options de financement, y compris la dette, les redevances, le streaming, le financement d'offtake et les capitaux propres, en donnant la priorité à la maximisation de la valeur pour les actionnaires.
GoviEx Uranium hat Endeavour Financial als Finanzberater für sein Muntanga-Uranprojekt in Sambia ernannt, was den ersten Schritt zur Sicherung der Projektfinanzierung darstellt. Das Projekt weist eine beeindruckende Wirtschaftlichkeit mit einem NPV8 von 243 Millionen USD, einer IRR von 20,8% und einer Amortisationszeit von 3,8 Jahren auf.
Für Muntanga wird prognostiziert, dass es über eine Lebensdauer von 12 Jahren durchschnittlich 2,2 Millionen Pfund U3O8 jährlich produzieren wird, wobei die Produktion für 2028 geplant ist. Das Projekt zeigt eine starke Hebelwirkung auf die Uranpreise und erzielt 45 Millionen USD an NPV für jeden Anstieg von 5 USD/Pfund bei den U3O8-Preisen. Das Unternehmen wird verschiedene Finanzierungsoptionen prüfen, darunter Schulden, Lizenzgebühren, Streaming, Offtake-Finanzierung und Eigenkapital, wobei die Maximierung des Shareholder-Value Priorität hat.
- NPV8 of USD 243 million with 20.8% IRR and quick 3.8-year payback
- Substantial production capacity of 2.2 million pounds U3O8 annually
- Strong leverage to uranium prices: +USD 45M NPV per USD 5/lb U3O8 increase
- Multiple financing options being explored to minimize equity dilution
- Well-established export routes to Western and Eastern markets
- Production not expected to begin until 2028
- Additional financing required, potential dilution risk
Vancouver, British Columbia--(Newsfile Corp. - February 20, 2025) - GoviEx Uranium Inc. (TSXV: GXU) (OTCQB: GVXXF) ("GoviEx" or "the Company") is pleased to announce that it has taken the first step in securing project financing for its Muntanga uranium project in Zambia (the "Muntanga Project" or "Muntanga") by appointing Endeavour Financial as its financial advisor.
Muntanga is a near-term uranium project with well-established export routes to potentially both Western and Eastern markets. The Muntanga Project boasts a NPV8 of USD 243 million[1], a
Daniel Major, Chief Executive Officer of GoviEx Uranium, said: "With the Feasibility Study for Muntanga completed in January 2025, we are now focused on securing project financing, a critical step in the development of this project. By appointing Endeavour Financial as our financial advisor, we are strategically leveraging their vast experience in mining finance, especially in Africa. Their expertise will be crucial in structuring an optimal funding solution for Muntanga. I am excited to progress with one of the few uranium projects that can address the increasing demand in a tight market."
The Company will explore all forms of project financing including debt, royalties, streaming, offtake finance and equity, with a focus on minimizing the size of any new equity raise and maximizing value per share metrics.
As the global energy transition accelerates, the demand for clean, reliable power continues to grow, whilst uranium supply remains constrained. Muntanga is positioned as one of the few advanced uranium projects capable of addressing this supply gap. With a strong economic profile, established export routes, and significant expansion potential, Muntanga is well-placed to capitalize on the strengthening uranium market and contribute to the world's shifting energy landscape.
Qualified Person Statement
The scientific and technical information in this release has been reviewed, verified, and approved by Mr. Jerome Randabel, MAIG, Chief Geologist of GoviEx, a Qualified Person as defined in Canadian National Instrument 43-101 "Standards of Disclosure for Mineral Projects".
About GoviEx Uranium Inc.
GoviEx (TSXV: GXU) (OTCQB: GVXXF), is a mineral resource company focused on the exploration and development of uranium properties in Africa. GoviEx's principal objective is to become a significant uranium producer through the continued exploration and development of its mine-permitted Muntanga Project in Zambia.
Contact Information
Isabel Vilela, Head of Corporate Communications
Daniel Major, Chief Executive Officer
Tel: +1-604-681-5529 Email: info@goviex.com Web: www.goviex.com
Cautionary Statement Regarding Forward-Looking Information
This news release may contain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities laws. All information and statements other than statements of current or historical facts contained in this news release are forward-looking information. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in GoviEx's periodic filings with Canadian securities regulators. When used in this news release, words such as "will", "could", "plan", "estimate", "expect", "intend", "may", "potential", "should," and similar expressions, are forward- looking statements. Information provided in this document is necessarily summarized and may not contain all available material information. Forward-looking statements include those in relation to: (i) GoviEx's ability to secure project financing for the Muntanga Project; (ii) the exploration of all forms of project financing with a focus on minimizing the size of any new equity raise and maximizing value per share metrics; ,(iii) the method and timing of any development and mining operations at Muntanga; (iv) the continued engagement program with potential off-takers; and (v) Muntanga emerging as one of the few near-term uranium projects capable of helping to address the uranium supply gap with an excellent potential to supply both Western and Eastern markets. Although GoviEx believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Such assumptions, which may prove incorrect, include the following: (i) that the GoviEx will successfully raise financing for the Muntanga Project; (ii) that the current uranium upcycle will continue and expand; (iii) that the integration of nuclear power into power grids world-wide will continue as a clean energy alternative; and (iv) that the price of uranium will remain sufficiently high and the costs of advancing GoviEx's mining projects will remain sufficiently low so as to permit GoviEx to implement its business plans in a profitable manner. Factors that could cause actual results to differ materially from expectations include: (i) The inability of the Company to raise financing for its Muntanga Project; (ii) a regression in the uranium market price; (iii) an inability or unwillingness to include or increase nuclear power generation by major markets; (iv) potential delays due to potential new health restrictions; (v) the failure of the GoviEx's projects, for technical, logistical, labour-relations, political or other reasons; (vi) a decrease in the price of uranium below what is necessary to sustain GoviEx's operations; (vii) an increase in GoviEx's operating costs above what is necessary to sustain its operations; (viii) accidents, labour disputes, or the materialization of similar risks; (ix) a deterioration in capital market conditions that prevents GoviEx from raising the funds it requires on a timely basis; (x) political instability in the jurisdictions where GoviEx operates; and (xi) generally, GoviEx's inability to develop and implement a successful business plan for any reason. In addition, the factors described or referred to in the section entitled "Risk Factors" in the MD&A for the year ended December 31, 2023, as well as the Annual Information Form for the year ended December 31, 2023, of GoviEx, which are available on the SEDAR+ website at www.sedarplus.ca, should be reviewed in conjunction with the information found in this news release. Although GoviEx has attempted to identify important factors that could cause actual results, performance, or achievements to differ materially from those contained in the forward- looking statements, there can be other factors that cause results, performance, or achievements not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances, or results will materialize. As a result of these risks and uncertainties, no assurance can be given that any events anticipated by the forward-looking information in this news release will transpire or occur, or, if any of them do so, what benefits GoviEx will derive therefrom. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this news release, and GoviEx disclaims any intention or obligation to update or revise such information, except as required by applicable law.
Cautionary Note to United States Persons:
The disclosure contained herein does not constitute an offer to sell or the solicitation of an offer to buy securities of GoviEx.
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements including but not limited to those referenced above collectively as "forward-looking statements" under the "Cautionary Statement Regarding Forward-Looking Information" involve known and unknown risks, uncertainties and other factors which may cause the actual results, the performance or achievements of GoviEx to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate as actual results, and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
[1]See press release titled "Goviex Uranium announces strong feasibility study results for Muntanga uranium project in Zambia" dated 23 January 2025; available under GoviEx's profile on the SEDAR+ website at www.sedarplus.ca.
[2] At USS90/lb U3O8
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/241617
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