GoviEx Uranium (TSXV: GXU) no longer has rights over the perimeter of the Madaouela mining permit following the Niger government’s decision on Thursday to withdraw its licence, dealing a big blow to the development of one of the world’s largest uranium projects.
The Vancouver-based uranium miner had feared that its licence could be revoked if mining could not start by July 3, 2024, a deadline set by Niger’s military leaders who came into power around this time last year.
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.
For the rest of this article: https://www.mining.com/goviex-uranium-has-mining-licence-in-niger-revoked-shares-plummet/