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Atomic Eagle regains control of Niger Madaouela uranium project
Niger agreed the deal would grant Atomic Eagle a 60% stake in Madaouela and withdraw pending arbitration within a week of signing the revised mining convention.
Atomic Eagle has regained control of its Madaouela uranium project in Niger, two years after the government revoked a mining permit held by predecessor GoviEx Uranium amid a dispute that moved to international arbitration, Mining.com reported.
Under a Mining Convention negotiated with Niger’s military government, Atomic Eagle will hold a 60% stake in Madaouela, with the government holding 40%. The agreement also includes a revised exploration permit for the project, Mining.com said.
The convention also covers permitting for a separate area, with Niger awarding a permit to state miner Tsumco for In Azaoua, where French miner Orano previously had a 63% interest in the Somaïr mine before Niger nationalized the site last year. The arbitration against the Niger government is set to be withdrawn within one week of the convention signing, which the company expects in the coming days.
Mining.com also noted that Niger supplies about 5.0% of global uranium demand and ranks as the world’s seventh largest producer by volume. Atomic Eagle said re-establishing its interest in Madaouela is “transformational,” and referenced earlier work on the project, including a 19-year mine life, 50.8 million lb of uranium oxide production, and forecasts from a 2022 study that pegged after-tax net present value at $140 million, using an 8% discount rate.