GoviEx Uranium and GoviEx Niger File Arbitration Request Against the Republic of Niger in Relation to Madaouela Project
GoviEx Uranium and its subsidiary GoviEx Niger have initiated arbitration proceedings against the Republic of Niger under the ICSID Convention regarding the Madaouela uranium project. This action follows Niger's July 2024 decision to withdraw GoviEx Niger's mining permit and abrogate related decrees. The companies assert these actions breach obligations under various agreements and laws.
The project had secured interest exceeding USD 200 million in potential debt financing and was advancing with infrastructure development when the rights were withdrawn. The project was expected to require USD 343 million in initial capital expenditure and create up to 800 jobs over its 20-year mine life. Despite attempts at amicable settlement, including local administrative recourse, the companies are now pursuing legal remedies while remaining open to constructive dialogue with the State.
GoviEx Uranium e la sua filiale GoviEx Niger hanno avviato procedimenti arbitrali contro la Repubblica del Niger ai sensi della Convenzione ICSID riguardante il progetto uranio Madaouela. Questa azione segue la decisione del Niger di luglio 2024 di revocare il permesso minerario di GoviEx Niger e abrogare i decreti correlati. Le aziende sostengono che queste azioni violano obblighi stabiliti in vari accordi e leggi.
Il progetto aveva già ottenuto un interesse superiore a 200 milioni di USD in potenziale finanziamento del debito ed era in fase di sviluppo infrastrutturale quando i diritti sono stati revocati. Si prevedeva che il progetto richiedesse un capex iniziale di 343 milioni di USD e creasse fino a 800 posti di lavoro nel corso della sua vita mineraria di 20 anni. Nonostante i tentativi di risoluzione amichevole, compresi i ricorsi amministrativi locali, le aziende stanno ora perseguendo rimedi legali rimanendo aperte a un dialogo costruttivo con lo Stato.
GoviEx Uranium y su subsidiaria GoviEx Niger han iniciado procedimientos de arbitraje contra la República de Níger bajo la Convención del ICSID en relación con el proyecto de uranio Madaouela. Esta acción sigue a la decisión de Níger en julio de 2024 de retirar el permiso de minería de GoviEx Niger y abrogar los decretos relacionados. Las empresas afirman que estas acciones violan obligaciones bajo varios acuerdos y leyes.
El proyecto había asegurado un interés superior a 200 millones de USD en financiamiento de deuda potencial y estaba avanzando con el desarrollo de infraestructura cuando se retiraron los derechos. Se esperaba que el proyecto requiriera una inversión inicial de 343 millones de USD y creara hasta 800 empleos durante su vida útil de 20 años. A pesar de los intentos de resolución amistosa, incluidos los recursos administrativos locales, las empresas ahora están buscando remedios legales mientras permanecen abiertas al diálogo constructivo con el Estado.
GoviEx 우라늄과 그 자회사인 GoviEx 니제르는 마다우엘라 우라늄 프로젝트와 관련하여 ICSID 협약에 따라 니제르 공화국에 대한 중재 절차를 시작했습니다. 이 조치는 니제르가 2024년 7월 GoviEx 니제르의 광산 허가를 철회하고 관련 법령을 폐지하기로 결정한 데 따른 것입니다. 회사들은 이러한 행위가 여러 계약 및 법률에 따른 의무를 위반했다고 주장하고 있습니다.
이 프로젝트는 잠재적인 부채 자금 조달에서 2억 달러 이상의 관심을 확보했으며 권리가 철회될 때 인프라 개발이 진행 중이었습니다. 이 프로젝트는 초기 자본 지출로 3억 4천3백만 달러가 필요할 것으로 예상되었으며, 20년의 광산 생애 동안 최대 800개의 일자리를 창출할 것으로 예상되었습니다. 우호적인 해결을 위한 노력에도 불구하고, 회사들은 현재 법적 구제를 추구하고 있으며 국가와의 건설적인 대화에 열려 있습니다.
GoviEx Uranium et sa filiale GoviEx Niger ont engagé une procédure d'arbitrage contre la République du Niger en vertu de la Convention ICSID concernant le projet d'uranium Madaouela. Cette action fait suite à la décision de juillet 2024 du Niger de retirer le permis minier de GoviEx Niger et d'abroger les décrets connexes. Les entreprises affirment que ces actions enfreignent des obligations prévues dans divers accords et lois.
Le projet avait sécurisé un intérêt dépassant 200 millions USD en financement de dette potentiel et avançait dans le développement des infrastructures lorsque les droits ont été retirés. On s'attendait à ce que le projet nécessite un investissement initial de 343 millions USD et crée jusqu'à 800 emplois durant sa durée de vie minière de 20 ans. Malgré les tentatives de règlement amiable, y compris les recours administratifs locaux, les entreprises poursuivent maintenant des recours juridiques tout en restant ouvertes au dialogue constructif avec l'État.
GoviEx Uranium und ihre Tochtergesellschaft GoviEx Niger haben ein Schiedsverfahren gegen die Republik Niger gemäß dem ICSID-Abkommen bezüglich des Madaouela-Uranprojekt eingeleitet. Diese Maßnahme folgt auf die Entscheidung Nigers im Juli 2024, die Bergbauerlaubnis von GoviEx Niger zurückzuziehen und die damit verbundenen Dekrete aufzuheben. Die Unternehmen behaupten, dass diese Maßnahmen gegen Verpflichtungen aus verschiedenen Vereinbarungen und Gesetzen verstoßen.
Das Projekt hatte ein Interesse von über 200 Millionen USD an potenzieller Fremdfinanzierung gesichert und war im Infrastrukturausbau fortgeschritten, als die Rechte entzogen wurden. Es wurde erwartet, dass das Projekt eine anfängliche Investition von 343 Millionen USD erfordert und über seine 20-jährige Lebensdauer bis zu 800 Arbeitsplätze schafft. Trotz Versuchen zur einvernehmlichen Lösung, einschließlich lokaler Verwaltungsbeschwerden, verfolgen die Unternehmen nun rechtliche Schritte, bleiben jedoch offen für einen konstruktiven Dialog mit dem Staat.
- Project had secured over USD 200 million in potential debt financing interest
- Project forecasted to create 800 jobs over 20-year mine life
- Initial capital expenditure planned at USD 343 million
- Loss of mining permit and rights to the Madaouela uranium project
- Legal dispute with Niger government affecting project development
- Failed attempts at amicable settlement with the State
Vancouver, British Columbia--(Newsfile Corp. - December 9, 2024) - GoviEx Uranium Inc. (TSXV: GXU) (OTCQB: GVXXF) ("GoviEx") and GoviEx Niger Holdings Ltd. ("GoviEx Niger"), GoviEx's fully owned subsidiary (together the "Companies"), have commenced arbitration proceedings (the "Arbitration") against the Republic of the Niger (the "State") under the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States (the "ICSID Convention").
The Companies commenced the Arbitration pursuant to the arbitration clause set out in the Mining Convention signed on 26 May 2007 by GoviEx Niger and the State (the "Mining Convention") which is governed by Nigerien Law, including the 1993 Mining Law as supplemented in 1999 and amended in 2006 (the "Mining Code"), on the basis that the State breached its obligations, as set out in the Mining Convention and Nigerien Law.
In July 2024, the Niger Ministry of Mines informed GoviEx Niger of its decision to deprive the company of its rights under a mining permit (the "Mining Permit") granted to GoviEx Niger (the "Withdrawal Decision") for the Madaouéla uranium project (the "Project"), and the Niger Council of Ministers later that month issued three decrees withdrawing the Mining Permit and abrogating the decrees granting the Mining Permit and approving the Mining Convention (together, the "Withdrawal Decrees").
The Companies consider that the Withdrawal Decision and Withdrawal Decrees constitute a breach of the State's obligations under the Mining Convention, the Mining Code and the Niger Civil Code, and that the conduct of the State vis-à-vis the Companies in relation to the Project constitutes a breach by the State of its obligation to execute its undertakings in good faith.
Over the last year and a half, the Companies received expressions of interest in excess of USD 200 million for Project related debt finance, started social and environmental due diligence with a prospective lender, updated the Project's Environmental and Social Impact Assessment, commenced Front-End Engineering Designs and initial ground works, including the construction of an access road necessary for exploiting the Project's mine.
With the recent recovery in uranium prices, the Project was poised for development and the Companies had started to advance despite the political changes in Niger since the coup d'Etat of July 2023. The Companies believe that the State's withdrawal of their rights to the Project will have a negative impact on the economic and social development of the region. With a forecast initial capital expenditure of USD 343 million, as well as considerable employment opportunities, the Project was forecast to create up to 800 jobs over its projected 20-year mine life, with substantial royalty payments and taxes payable to the State.1
While the Companies have attempted to settle their dispute with the State amicably, including through initiating a local administrative recourse before the Niger President of the Republic, the State has shown no willingness to engage with the Companies to reach an amicable settlement.
The Companies strongly believe that they are entitled to be reinstated in their rights to the Project and/or be awarded monetary compensation as a result of the State's conduct in relation to the Project and are accordingly pursuing a legal remedy under the Mining Convention to safeguard their rights. The Companies may, as required, pursue other available remedies, including international arbitration under the 2019 Memorandum of Understanding signed by GoviEx Niger and the State.
Notwithstanding the commencement of this Arbitration, the Companies remain committed to engaging constructively with the State to resolve the dispute.
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 the Company, a Qualified Person as defined in Canadian National Instrument 43-101 "Standards of Disclosure for Mineral Projects".
Notes:
1. See technical report titled, "A Feasibility Study for the Madaouela Uranium Project, Niger" dated effective November 01, 2022, available under the Company's profile on the SEDAR+ website at www.sedarplus.ca.
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 establish in the Arbitration that the Withdrawal Decision and Withdrawal Decrees constitute a breach by the State of its relevant contractual and legal obligations; (ii) GoviEx's ability to be reinstated in its rights to the Project and/or be awarded monetary compensation as a result of the State's conduct in relation to the Project; (iii) GoviEx's ability to pursue other available remedies against the State, including through international arbitration under the 2019 Memorandum of Understanding; and (iv) GoviEx maintaining its commitment to engaging constructively with the State and stakeholders. 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) GoviEx will be able to establish in the Arbitration that the Withdrawal Decision and Withdrawal Decrees constitute a breach by the State of its relevant contractual and legal obligations; (ii) GoviEx will be able to obtain an arbitral award reinstating it in its rights to the Project and/or awarding GoviEx monetary compensation as a result of the State's conduct in relation to the Project; (iii) GoviEx will be able to pursue other available remedies against the State, including through international arbitration under the 2019 Memorandum of Understanding; and (iv) GoviEx will be able to maintain its commitment to engaging constructively with the State and stakeholders. Factors that could cause actual results to differ materially from expectations include (i) GoviEx not being successful in establishing in the Arbitration that the Withdrawal Decision and/or Withdrawal Decrees constitute a breach by the State of its relevant contractual and legal obligations (ii) GoviEx not being able to pursue the Arbitration or secure an arbitral award in its favour in the Arbitration, (iii) decisions made by the arbitral tribunal in the Arbitration, (iv) counterclaims or defences by the State in the Arbitration, (v) and any hurdles to the enforcement against the State of any award rendered in favour of GoviEx. 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232998
FAQ
What legal action has GoviEx Uranium (GVXXF) taken against Niger in December 2024?
Why did Niger withdraw GoviEx's (GVXXF) mining permit in July 2024?
What was the projected value and impact of GoviEx's (GVXXF) Madaouela project?
