GoviEx Uranium Inc (TSX-V: GXU, OTCQB: GVXXF) and its subsidiary GoviEx Niger Holdings said in a press release dated September 11 they have agreed with Niger to extend a pause in ICSID arbitration over the Madaouela Uranium Project for six months, until March 2026.

Madaouela is one of the world’s largest uranium resources, with measured and indicated resources of 100mn pounds of U₃O₈ and a post-tax net present value of $376mn at a uranium price of $80 per pound.

The dispute over the project began when Niger’s military-led government revoked GoviEx’s mining permit in July 2024, citing its alleged failure to meet development conditions. The Canadian mineral resource company, which has been working on Madaouela since 2007, had a prior agreement with the government that was toppled in a coup in July 2023.

GoviEx holds an 80% interest in the operating company COMIMA, with the remaining 20% held by the Republic of Niger. After the permit’s cancellation, GoviEx launched arbitration proceedings in December 2024 to reclaim its rights.

“Madaouela was a project into which we poured over a decade of dedication, with more than 650,000 metres of drilling and the discovery of one of the world’s largest known uranium resources," GoviEx executive chairman Govind Friedland said in a release on January 6.

“Around the time these rights were revoked, we were actively pursuing financing opportunities for Madaouela, some at a very advanced stage. Despite this setback, we remain fully committed to pursuing every avenue available to protect GoviEx’s rights in relation to this project.”

The agreed pause in arbitration announced this week follows a letter of intent signed in February 2025 that outlined a framework for negotiations. While both sides have signalled their desire to reach an amicable resolution, GoviEx cautioned that talks may not produce a binding agreement, and arbitration could resume.

GoviEx said it will continue to provide updates as discussions over Madaouela progress. It also noted that the arbitration and related negotiations remain separate from GoviEx’s reverse takeover of ASX-listed Tombador Iron Limited announced in August.

Niger — one of the world's poorest countries — has uranium resources of 311,000 metric tonnes (mt) in total, the third highest in Africa after Namibia (470,000 mt) and South Africa (320,000 mt), according to Statista. It also has the continent's highest-grade uranium ores.

In 2022, it produced 2,020 mt of uranium, down from 2,991 mt in 2020, according to the World Nuclear Association (WNA), making it the world's seventh-biggest producer of uranium. But Niger accounted for only 4% of global production, well behind Kazakhstan (43%), Canada (15%), Namibia (11%) and Australia (8%), according to the WNA.

Key events in the GoviEx—Niger dispute over the Madaouela uranium project

• 2007 — GoviEx begins exploration and development work on the Madaouela uranium project near Arlit, Niger.
• July 2023 — Niger’s President Mohamed Bazoum ousted in a military coup. The junta later expels French troops and terminates a US security pact, while welcoming Russian instructors.
• July 2024 — Niger’s military government revokes GoviEx’s mining permit for Madaouela, citing failure to meet development conditions.
• December 2024 — GoviEx files for ICSID arbitration against Niger to reclaim its rights.
• January 6, 2025 — Executive chairman Govind Friedland issues a statement, stressing over a decade of investment, 650,000m of drilling, and 100mn lbs U₃O₈ resources.
• February 2025 — GoviEx and Niger sign a letter of intent (LoI) to create a negotiation framework.
• September 2025 — Both parties agree to extend the pause in arbitration for six months, until March 2026, while negotiations continue.

Post-coup Niger pivots away from Western partners

After Niger's democratically elected President Mohamed Bazoum was overthrown in July 2023, the military leadership expelled French forces and ended a long-standing security agreement with the US, giving Washington two months to withdraw its troops. At the same time, 100 Russian military instructors arrived in Niamey in April that year to train Niger's forces on Russian air defence systems.

While boosting ties with Russia, Niger has taken a tough stance on foreign mining licences since the military coup, including cancelling French state-owned nuclear fuel company Orano’s permit for the Imouraren uranium project. Orano still holds exploration rights in Niger and has been negotiating with authorities about potential new projects.

Meanwhile, last month Russia proposed building Niger’s first nuclear power plant, signalling a deepening partnership in civilian atomic energy – and further challenging France’s longstanding role after Niamey seized and nationalised French-managed uranium assets.

Rosatom, Moscow’s state-owned nuclear agency, signed an agreement with Niger’s military authorities covering electricity generation, medical use of nuclear technology and training programmes.

“Our task is not simply to participate in uranium mining. We must create an entire system for the development of peaceful atomic energy in Niger,” Russian Energy Minister Sergei Tsivilev was quoted by the BBC as saying during a visit to Niamey. If realised, the project would represent the first nuclear power station in West Africa.

Russia has positioned itself as a partner offering industrial development, appealing to resentment that Niger was limited to raw materials exports under French control, the BBC wrote at the time, noting the approach reflects policies in neighbouring Mali and Burkina Faso, which have also strengthened ties with Moscow.