Atomic Eagle regains 60% of Niger’s Madaouela uranium project, will end arbitration

Atomic Eagle (ASX: AEU; OTCQX: AEUXF) has agreed to terms with Niger for a new mining convention that would restore a 60% interest and operational control in the Madaouela uranium project, resolving a dispute that followed the withdrawal of the project’s mining permit in 2024.

The Australian-listed uranium developer said on August 24 that a new exploitation permit had been granted to Madaouela Mining Company (MAMICO), which will be 60% owned by Atomic Eagle and 40% by the Nigerien state. Niger’s interest will comprise a 15% free-carried stake and a 25% contributing interest.

Madaouela, near Arlit in northern Niger, has a foreign mineral resource estimate of 116.5mn pounds (52,844 tonnes) of U3O8 at an average grade of 1,282 parts per million. The estimate covers 41.21mn tonnes of material and is supported by about 600,000 metres of historical drilling and feasibility-level studies.

The resource was prepared under Canada’s NI 43-101 framework and is not currently compliant with Australia’s JORC Code. Atomic Eagle has begun verification and technical optimisation work and is targeting a JORC compliant mineral resource estimate in the fourth quarter of 2026.

Atomic Eagle said the commercial terms require a $5mn payment following issuance of the exploitation permit and another $5mn when construction begins. Niger’s government separately described the permit terms as including an initial fixed payment of $10mn to the state. Atomic Eagle will also provide a credit of up to $40mn against Niger’s future equity contributions for its 25% contributing interest. The exploitation permit has an initial 10 year term and can be renewed for successive five-year periods.

The agreement marks a reversal of the dispute that began when Niger withdrew the Madaouela mining permit from GoviEx Uranium in July 2024. GoviEx subsequently launched arbitration proceedings against the government through the International Centre for Settlement of Investment Disputes before the two sides suspended the case to pursue a negotiated settlement. GoviEx became a wholly owned subsidiary of the former Tombador Iron in November 2025, with the combined company renamed Atomic Eagle.

Atomic Eagle said it intends to withdraw the arbitration proceedings within seven days of signing the mining convention, which is expected to be formally executed shortly. Chief Executive Phil Hoskins described the agreement as a “transformational outcome” that would significantly increase the company’s uranium resource base.

Madaouela gives Atomic Eagle a second advanced African uranium project alongside its flagship Muntanga project in Zambia, which contains a JORC mineral resource of 58.8mn pounds (26,672 tonnes) of U3O8. Atomic Eagle said Muntanga would remain its primary development focus while it updates technical studies, evaluates financing options and considers potential strategic partners for Madaouela.

The agreement stands out against Niger’s broader push for greater state control over its uranium industry. At the same August 21 cabinet meeting that approved the Madaouela arrangements, the government awarded the In Azaoua uranium permit to state controlled TSUMCO SA following the nationalisation of SOMAÏR, previously controlled by French nuclear group Orano.

Niger’s government said the Madaouela arrangements also include commitments to create about 1,000 jobs for Nigerien nationals, strengthen local content and give priority to domestic suppliers. The project remains subject to resource verification, updated technical and environmental work, and financing and investment decisions before production can begin.

Africa remains an important source of uranium for the global nuclear fuel industry, led by Namibia, which produced 7,333 tonnes of uranium in 2024, equivalent to about 12% of global mine output and making it the world’s third largest producer, according to the World Nuclear Association. Namibia’s operating mines include Husab, controlled by China General Nuclear through Swakop Uranium, Rössing, majority owned by China National Nuclear Corporation, and Langer Heinrich, operated by Paladin Energy (ASX: PDN; TSX: PDN; OTCQX: PALAF).

Niger produced 962 tonnes in 2024, while South Africa produced an estimated 200 tonnes, largely as a by-product of gold mining. A new generation of projects could expand African supply further, including Bannerman Energy’s (ASX: BMN; NSX: BMN; OTCQX: BNNLF) Etango project and Deep Yellow’s (ASX: DYL; NSX: DYL; OTCQX: DYLLF) Tumas project in Namibia, alongside Atomic Eagle’s Muntanga and Madaouela assets in Zambia and Niger.