Africa : GoviEx Uranium controls robust uranium portfolio after transaction

GoviEx Uranium Inc, CSE listed company, has now onwards a robust uranium development project pipeline portfolio in four African countries, following the completion of a transaction with Denison Mines Corp, disclosed on Monday, that combines their respective African uranium mineral interests.

Under the terms of the Transaction, GoviEx acquired Rockgate Capital Corp., Denison’s wholly owned subsidiary, which holds all of the parent company Africa-based uranium interests, in exchange for 56,050,450 shares of GoviEx and 22,420,180 common share purchase warrants of GoviEx.

“This transaction provides Denison shareholders with significant exposure to GoviEx’s Madaouela project, which is one of the world’s most advanced and arguably underappreciated uranium development assets”, David Cates, President and Chief Executive Officer of the Toronto and New-York listed company Denison commented.

The now combined asset portfolio of GoviEx includes the permitted uranium development projects Madaouela in Niger and Mutanga in Zambia, alongside the advanced exploration-stage Falea project in Mali and the exploration-stage Dome Project in Namibia.

The company enjoys a control of one of the largest uranium resource bases among publicly listed companies, with measured and indicated resources of 124.29 Mlbs U3O8, plus inferred resources of 73.11 Mlbs U3O8.

"The closing of this transaction with Denison signifies a new beginning for GoviEx” Govind Friedland, Founder and Executive Chairman of GoviEx, commented.

Friedland said the company has greatly expanded its uranium resources, diversified geographically, and introduced a project pipeline to add leverage to the development of the flagship Madaouela uranium project in Niger.

He drew the attention on the uranium market that may be reaching a turning point, as classic signs of a commodity are seen to be at, or near, the bottom of the commodity cycle.

GoviEx’ Executive chairman underscored that in March, China unveiled a new, five-year plan to increase its nuclear power generation capacity from 27 gigawatts to 150 gigawatts by 2030.

Govind Friedland further said with thus more than US$700 billion in nuclear power generation investments currently planned, the long-term fundamentals for the uranium market remain incredibly strong.