09:17 AM EDT, 04/19/2024 (MT Newswires) -- GoviEx Uranium ( GVXXF ) said it is being forced by Niger to begin mining at its Madaouela uranium project by July 3 or risk losing its mining permit.

The company is working with the Niger government to come to a "mutually beneficial solution," GoviEx said. GoviEx is discussing with third parties regarding potential investments to expedite the project's development. The company said it has advanced the project despite the coup d'etat in Niger on July 26, 2023. Since then, the company has completed its updated environmental and social impact assessment.

Last month, GoviEx said due diligence for the project had started on behalf of prospective lenders and that it had expressions of interest of more than US$200 million for project related debt financing. The company recently began front-end engineering designs and initial ground works, including the construction of an access road at the project.

According to the statement, the Madaouela project represents a significant investment in the Nigerien economy, with an expected initial capital expenditure of US$343 million, and has the potential to create up to 800 jobs over its 20-year mine life. The government holds a 20% stake in COMIMA, the Nigerien company set up to develop the project.

GoviEx continues to progress the mine-permitted uranium project in Zambia which is expected to publish its feasibility study in the second half of this year.