In a press release, the company said that the licence withdrawal “does not follow the procedure prescribed under the applicable mining code” in Niger, and it reserves the right to challenge the decision before the competent national or international jurisdictions.
Shares of GoviEx Uranium plummeted 41.2% to a 52-week low of C$0.50 by 2 p.m. ET on the latest development, dropping its market capitalization to C$38.3 million ($28.1m).
GoviEx also believes that the government’s decision to withdraw the mining rights for the Madaouela project will have a negative impact on the economic and social development of the region.
According to the World Nuclear Association, Niger is a top 10 uranium producer in the world and the second-largest producer in Africa. The ruling government currently has a 20% stake in GoviEx’s Madaouela project, which contains one of the largest uranium resources globally.
Madaouela development
The company…
