Atomic Eagle Secures 60% Madaouela Uranium Project Stake

Atomic Eagle Reclaims Strategic Uranium Asset in Niger

Atomic Eagle Limited (ASX:AEU) has successfully negotiated terms to regain a 60% stake and operational control of the Madaouela Uranium Project in Niger, a move that substantially expands its uranium resource base. Madaouela, hosting a foreign Mineral Resource Estimate of 116.5 million pounds of U3O8 at an average grade of 1,282 ppm, joins the company’s flagship Muntanga Project in Zambia, which holds a JORC-compliant resource of 58.8 million pounds. This acquisition marks a significant milestone, establishing a dual-asset platform with increased scale and strategic development optionality.

Mining Convention Resolves Longstanding Dispute with Niger

The new Mining Convention, set to be formally signed imminently, grants Atomic Eagle’s Niger subsidiary, Madaouela Mining Company SA (MAMICO), the exploitation permit with a 10-year initial term and provisions for renewal. The Republic of Niger retains a 40% interest, split between a 15% free-carried and 25% contributing stake, with a US$40 million credit applied against future equity contributions. Crucially, the agreement includes strong legal and fiscal stabilisation clauses, offshore banking permissions, and internationally recognised dispute resolution mechanisms under ICSID, providing tenure security and a clear framework for project development.

Robust Historical Data Underpins Resource and Development Plans

Madaouela’s resource estimate is based on an extensive historical drilling campaign totalling approximately 600,000 metres, completed primarily by the previous owner, GoviEx Uranium Inc, with around US$160 million invested in technical studies. The resource comprises 96.9 million pounds in measured and indicated categories and 19.6 million pounds inferred, though it remains a foreign estimate prepared under Canadian NI 43-101 standards and not yet JORC compliant. Atomic Eagle plans to convert this to a JORC Mineral Resource Estimate by the end of 2026, a critical step for advancing feasibility and financing.

Strategic Flexibility Across Two African Uranium Projects

With Madaouela added to its portfolio, Atomic Eagle now controls two advanced uranium development projects in Africa’s key uranium jurisdictions; Niger and Zambia. While Muntanga remains the company’s primary focus, ongoing drilling and resource optimisation at Muntanga complement the technical review and development pathway assessments planned for Madaouela. This dual-asset approach offers flexibility to pursue various development, partnership, and financing options as uranium market fundamentals evolve, particularly amid forecasts of tightening supply into the early 2030s.

Offtake and Governance Provisions Provide Commercial Clarity

The Mining Convention clarifies offtake arrangements, requiring government approval for contracts but incorporating a 90-day deemed approval mechanism to avoid undue delays. The Niger government holds rights to purchase and market its share of production, capped at 50% under certain conditions, with pre-emption rights on offtake agreements. Operational control remains firmly with Atomic Eagle, subject to agreed governance structures, ensuring the company can steer project development effectively.

Next Steps Focus on Resource Conversion and Feasibility

Atomic Eagle’s immediate priorities include validating and converting the Madaouela resource to JORC standards, conducting technical optimisation studies, and exploring financing and partnership opportunities. The company anticipates releasing the updated JORC Mineral Resource Estimate in late 2026, paving the way for updated feasibility work targeted from 2027. This measured approach balances technical rigour with strategic flexibility, positioning Atomic Eagle to capitalise on evolving uranium market dynamics.