DMC Mining’s Firawa Project Holds 17.6Mlb Uranium but Faces Approval Delays

Acquisition Progress and Project Potential

DMC Mining announced in June 2024 its intention to acquire 100% ownership of two promising uranium projects in Guinea, the Firawa Uranium-Rare Earth Element-Niobium (REE-Nb) project and the Labé Uranium project. The Firawa project, in particular, stands out with a substantial inferred mineral resource estimate of 27.1 million tonnes at 295 ppm uranium oxide, equating to approximately 17.6 million pounds of contained uranium. The project also boasts significant rare earth element intersections, with total rare earth oxides (TREO) grades exceeding 3% in some drill holes, and a favourable neodymium-praseodymium ratio above industry averages, underscoring its potential strategic value.

Regulatory Hurdles in Guinea

Despite the promising resource base, DMC’s acquisition remains incomplete due to delays in the granting of exploration licenses. Guinea’s Ministry of Mines and Geology has been conducting a nationwide review and cleanup of mining titles, revoking inactive or non-compliant licenses as part of a broader restructuring of the mining cadastre system. This process has slowed approvals across the sector, including for DMC’s pending exploration license applications for Firawa and Labé. However, the company’s existing reconnaissance licenses remain active, and the Ministry has confirmed in writing that DMC’s exploration license applications are intact and progressing through formal channels.

Financial Position and Operational Focus

Financially, DMC Mining is under pressure. The company reported cash holdings of just A$14,000 at the end of June 2025, a precariously low balance for a junior miner with ambitious project plans. It continues to draw on an unsecured loan facility with Aries Finance Pty Ltd, having drawn A$600,000 of an A$800,000 limit. No equity changes or related party payments were recorded during the quarter. Operationally, DMC has paused work on its Ravensthorpe nickel project in Western Australia to concentrate resources on advancing the Guinea acquisition and related approvals.

Engagement and Next Steps

DMC’s leadership remains actively engaged with Guinean authorities to expedite license approvals. Chairman Michael Minosora is currently in Guinea, working alongside in-country representatives to maintain positive dialogue with the Ministry of Mines. Securing these exploration licenses is critical not only for completing the acquisition but also for enabling the company’s planned capital raising and eventual ASX re-listing, which remains suspended pending transaction completion.

Outlook Amid Uncertainty

While the Firawa and Labé projects offer considerable upside given their resource potential and strategic mineral content, the delays in regulatory approvals and the company’s tight cash position present significant near-term challenges. Investors will be watching closely for progress on license grants and capital raising efforts, which will be pivotal in determining whether DMC can unlock value from these Guinea assets and resume active development.