Toshiba has agreed to extend an early redemption right of its $10m uranium loan (B Bond) with GoviEx Uranium by two years to 31 December 2017.

GoviEx said that the extension reaffirms the commitment by Toshiba to the commercial development of the Madaouela project in the Arlit uranium-mining district of northern Niger.

GoviEx executive chairman Govind Friedland said the agreement is a definitive confirmation of the ongoing, high-level and long-term support that the company continues to receive from Toshiba.

"We remain optimistic that the extended redemption date will more closely align with improved uranium market conditions.

"Indications from Japan point to the continued restart of idled nuclear power plants, and the outlook includes significant anticipated growth in nuclear power production in China, India and the Middle East."

GoviEx borrowed 200,000 pounds of uranium compound triuranium octoxide (U3O8) from Toshiba on 18 April, 2012 and required to pay 495,193 pounds of U3O8 on maturity.

Last month, GoviEx submitted an updated integrated development plan (IDP) for the Madaouela uranium project in Niger.

The Madaouela property is located in the Tim Mersoi basin, which covers majority of the western portion of the Republic of Niger with extensions in Algeria, Mali, Benin and Nigeria.

There are two producing mines in the Arlit region that are immediately adjacent to the Madaouela project.