GoviEx Uranium’s Isabel Vilela shares insights into progress in Niger, Tombador Iron transaction – ICYMI

GoviEx Uranium Inc (TSX-V:GXU, OTCQB:GVXXF)’s head of corporate communications Isabel Vilela spoke with Proactive about the company’s recent developments, including progress in Niger and the planned transaction with Tombador Iron. 

Vilela explained that GoviEx had agreed with the Republic of Niger to extend the pause in arbitration over the Madaouela Project license for another six months. 

She also provided an update on the reverse takeover transaction with Tombador, highlighting that over 40% of GoviEx security holders have already committed to supporting the deal.  

In addition, Vilela outlined the benefits of the transaction, including access to Australian mining investors, an injection of between A$5 million and A$10 million at a premium to the current share price, and a tighter capital structure through share consolidation. 

Proactive: I’m joined by GoviEx Uranium head of corporate communications Isabel Vilela. Could you give us more details about the arbitration pause with the government of Niger? 

Isabel Vilela: We’re really pleased that we have announced that we’ve agreed with the Republic of Niger to extend the pause in arbitration for another six months. Earlier this year, we had actually signed a letter of intent with them that agreed on a roadmap, so that we could continue the discussions about the Madaouela Project, which you may recall had its license revoked last year. 

Of course, there is no guarantee that we will end up in a binding agreement. But the key point here is that both parties are willing to talk and negotiate, and we want to keep the dialogue going. And just to be clear, the pause in arbitration is completely separate from our transaction with Tombador Iron. So that doesn’t impact the deal in any way, and the deal doesn’t impact the arbitration either. They are both completely separate. 

You mentioned Tombador Iron and the reverse takeover that you recently announced. Isabel, fill us in on what’s happening there. 

The Tombador transaction is moving ahead really well. Since we signed the arrangement agreement in August, we had more than 40% of our security holders committing to support the deal, which is a very strong sign of confidence. On the Tombador side, they filed their circular with the ASX, and their shareholder vote is scheduled for early October. 

Our own security holders meeting is later in October. Once these steps are complete and we get all of the regulatory approvals that we need, we are intending to close before the end of the year. So, the process is on track, and we are feeling very good about the level of support that we are having and the progress that we are making. 

And can you remind us about the rationale for that transaction? 

First, an ASX listing gives us access to a pool of specialist mining investors in a different jurisdiction to Canada. Second, Tombador has approximately A$10 million in its shell. And on top of that, it will be raising between $5 million and $10 million at a premium to our current share price, which is going to be strengthening our balance sheets from the start. 

We are also bringing in Matador Capital, which is a fantastic team and will be providing us with support. They will also join as a cornerstone investor and advisor. On top of that, the transaction is also giving us a tighter capital structure because we are doing a share consolidation. And I think it is also important to mention that GoviEx shareholders will be retaining 75% of the combined company pre-raise. 

And then we are also rebranding to Atomic Eagle, which will give us a much-refreshed platform and a team that will continue to be focused on developing the Muntanga Project and realizing its full potential. So, all in all, we see this as a great transaction and a truly transformational step for us.