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GoviEx Uranium to appeal termination of mining license

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(Kitco News) - The Zambia government has terminated GoviEx's Chirundu Mining License, the company said on Tuesday.

GoviEx Uranium (CVE:GXU) received a letter from the Mining Cadastre Department of Zambia informing them of the decision.

The company intends to appeal.

In 2017 GoviEx acquired the Chirundu Mining License from African Energy Resources.

The company has a preliminary economic assessment on the property showing a net present value of $112 million at long-term uranium price of US$58/lb U3O8 and a 9% mining royalty rate.

The company's CEO hopes to clear up any misunderstandings and for government officials to consider the merits of a diversified resource base.

“We are disappointed by the decision made by the Mining Cadastre with regards the Chirundu license and do not believe this decision is fair or in the interests of our Zambian stakeholders. We will appeal the decision within the allotted time frame and hope to rectify any misunderstandings we believe were included in making this decision. Zambia has indicated its strategy diversify its heavy weighting towards copper, and with Zambia considering nuclear energy long term and with the uranium price showing signs of recovery we will stress that the decision should to be reconsidered,” stated CEO Daniel Major.

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