Atomic Eagle (ASX:AEU) has formally executed a mining convention with the Republic of Niger for its Madaouela Uranium Project.
The agreement formalises the legal, fiscal, and operational framework governing development of the project and is effective from signing. It completes the commercial resolution announced in August and triggers agreed steps to discontinue historical ICSID (International Centre for Settlement of Investment Disputes) arbitration proceedings.
Under the arrangement, Atomic Eagle’s 60%-owned Nigerien subsidiary Madaouela Mining SA will hold the mineral exploitation permit. The Republic of Niger holds a 40% interest comprising a 15% free-carried interest and a 25% contributing interest.
Atomic Eagle retains operational control and responsibility for managing mining operations.
The execution of the mining convention follows the recent conditional approval of the US International Development Finance Corporation (DFC) of a proposed debt facility for the Dasa Uranium Project.
CEO Phil Hoskins says the formal execution of the mining convention provides a clear framework under which Atomic Eagle and the Republic of Niger can progress Madaouela.
“Niger has supported uranium mining for more than five decades and the recent conditional DFC board approval for Dasa is an encouraging indication that international institutions continue to assess investment opportunities in Niger’s uranium sector,” Hoskins says.
The convention establishes the framework for future project financing and offtake arrangements, and supports long-term tenure through an initial 10-year term with subsequent renewal provisions.
Under the terms, Atomic Eagle will make an initial US$5 million ($7.1 million) payment within 30 days of execution.
Meanwhile, the company continues evaluating historical technical information for Madaouela and aims to report a JORC mineral resource estimate at the project by the end of 2026.
Atomic Eagle is a uranium developer focused on advancing its assets in Africa.
Write to Paula Fabe at Mining.com.au
Main image: Atomic Eagle Mining
