Key Highlights

  • Atomic Eagle (ASX:AEU) has agreed terms for a new Mining Convention with the Republic of Niger covering the Madaouela Uranium Project.
  • Atomic Eagle will hold a 60% interest and operational control, while the Republic of Niger will hold 40%, comprising a 15% free-carried and 25% contributing interest.
  • Madaouela has a reported 116.5 million pounds of U₃O₈ at 1,282 parts per million, although this is a foreign estimate and is not currently reported as a JORC Mineral Resource.
  • Atomic Eagle will pay US$5 million within 30 days of exploitation permit issuance and a further US$5 million when construction begins.

Atomic Eagle (ASX:AEU) has reached an agreement with the Republic of Niger to re-establish its interest in the Madaouela Uranium Project, creating a two-project uranium development portfolio alongside its Muntanga project in Zambia. The agreement follows a period of dispute over Madaouela and provides a new ownership and operating framework under which Atomic Eagle will hold 60% of the project and retain operational control.

New Mining Convention Establishes Ownership Structure

The agreed Mining Convention provides for the Madaouela exploitation permit to be held by Madaouela Mining Company SA, or MAMICO, a newly incorporated Nigerien subsidiary. Atomic Eagle will own 60% of MAMICO, while the Republic of Niger will hold the remaining 40%.

The government interest consists of a 15% free-carried component and a 25% contributing interest. The contributing portion requires the State to fund its share of future Equity contributions or dilute under an agreed formula. Atomic Eagle has also agreed to a US$40 million Credit against the Government’s future project-development equity contributions. The company states that this credit does not represent an additional upfront cash payment.

Madaouela Adds a Large Uranium Resource Base

Madaouela is reported to contain 116.5 million pounds of U₃O₈ at 1,282 parts per million. However, the estimate is classified as a foreign estimate prepared under Canada’s NI 43-101 framework and is not currently compliant with the 2012 JORC Code.

Atomic Eagle has commenced resource verification and technical optimisation, with a JORC Mineral Resource targeted for release toward the end of 2026. The company will also review mine planning, development configurations and alternative development Options as part of its technical program.

The project has an extensive historical technical base, including approximately 600,000 metres of drilling. Atomic Eagle said previous owner GoviEx invested approximately US$160 million in the project, providing historical drilling, feasibility-level studies and other technical information for the company to reassess.

Commercial Terms Include US$10 Million in Payments

The Mining Convention includes two specified payments associated with the exploitation permit. Atomic Eagle will pay US$5 million within 30 days of the permit being issued and another US$5 million when construction commences.

The exploitation permit will initially run for 10 years and can be renewed for successive five-year periods for the life of the mine, subject to applicable requirements. The agreement also contains legal, fiscal and regulatory stabilisation provisions and provides access to international arbitration under the ICSID framework.

Offshore banking is permitted subject to applicable repatriation requirements, while offtake contracts may be denominated in Niger’s legal currency or a freely convertible currency.

Government Offtake Rights Defined

The Mining Convention establishes a framework for government participation in future production marketing. The State can purchase and market a portion of production up to its shareholding, while certain circumstances provide additional pre-emption or requisition rights.

Government rights over production offtake are capped at 50% and are subject to specified conditions. Where the State exercises its pre-emption right, it can enter an offtake agreement on the same volume, pricing, duration and payment terms as the proposed third-party arrangement. Existing binding offtake contracts cannot be disrupted by these rights.

Muntanga Remains Primary Development Focus

Despite the addition of Madaouela, Atomic Eagle said its Muntanga Uranium Project in Zambia remains its primary development focus. Muntanga contains a 58.8 million-pound JORC Mineral Resource and is undergoing resource expansion and optimisation work.

The company expects to continue drilling at Muntanga through 2026 and progress optimisation activities, with updated feasibility work targeted from 2027. At Madaouela, the immediate priorities are resource verification, JORC conversion, technical assessment and evaluation of financing and development pathways.

Financial Measures Unchanged in Announcement

The announcement does not report changes in Atomic Eagle’s revenue, NPAT or dividend. Accordingly, there is no reported increase or decline in those financial measures associated with the Madaouela agreement.

The transaction does, however, introduce specified future cash obligations of US$5 million following permit issuance and another US$5 million at construction commencement. Future development would also require an appropriate financing structure, which the company said remains under assessment.

Conclusion

Atomic Eagle’s agreement with Niger restores a 60% interest and operational control in the Madaouela Uranium Project while establishing a new framework for ownership, permitting, financing and offtake. The project adds a reported 116.5 million pounds of U₃O₈ to the company’s portfolio, although that figure remains a foreign estimate pending JORC verification. With Muntanga continuing as the primary development focus, Atomic Eagle now has two advanced uranium Assets across Zambia and Niger, while its next Madaouela priorities are resource conversion, technical optimisation and assessment of development and financing pathways.