Vancouver, British Columbia–(Newsfile Corp. – January 9, 2023) – GoviEx Uranium Inc. (TSXV: GXU) (OTCQX: GVXXF) (“GoviEx” or “Company“), is pleased to provide an update on the financing process for the mine-permitted Madaouela uranium project in the Republic of Niger (the “Madaouela Project” or the “Project“).
Following the announcement of the Project’s Feasibility Study (“FS“) results on 20 September 2022, GoviEx has been working with its financial advisors, Endeavour Financial (“Endeavour“), to develop the optimum financing solution for the Madaouela Project.
The initial phase involved Endeavour reviewing the FS technical and financial information and issuing a Project marketing document to prospective financiers to solicit interest in providing project related debt financing.
This initial phase is now complete and has resulted in a preliminary short-list of approximately 20 institutions who will now move forward with the detailed due diligence phase. Prospective project financiers include a mix of commercial banks, export credit agencies, development finance institutions, equipment suppliers and alternative finance providers.
Daniel Major, CEO, commented:
“We view the initial results from the project financing progress with Endeavour as very encouraging which we believe underlines the positive technical and financial results from the FS and the strong potential to source debt financing for the Madaouela Project. We continue to look to the future with confidence and will notify the market of milestones that we complete”.
Prospective financiers will now be provided with additional information relating to the Company and Project through a virtual dataroom with the objective of obtaining formal expressions of interest (“EOIs“). Following receipt of EOIs, Endeavour and the Company intend to select a small group of preferred financiers to move forward into the detailed due diligence phase.
The project finance process is expected to take several months and is being run in parallel to discussions with utilities regarding offtake. The Company will provide updates on the financing process as it progresses.
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