Lotus seals Kayelekera restart loan, inks offtake agreements
Australia-listed Lotus Resources on Tuesday announced two uranium offtake agreements and a binding $15-million loan to partially fund the restart of its Kayelekera mine, in Malawi.
The contracts total between 1.5-million pounds and 1.8-million pounds of uranium from Kayelekera from 2026 to the end of 2032.
Kayelekera will supply PSEG, a subsidiary of Public Sector Enterprise Group, a diversified energy company based in Newark, New Jersey, and Curzon Uranium, an international uranium market participant.
The term sheet with PSEG is subject to execution of a definitive U3O8 sale and purchase agreement within four months and Lotus proceeding with the restart of Kayelekera.
The binding agreement with Curzon is conditional on Lotus completing an equity raise in conjunction with the restart of Kayelekera.
“Our first two sales contracts, coupled with unsecured financing with significant drawdown flexibility, marks a terrific milestone for Lotus and our Kayelekera project,” said Lotus CEO Greg Bittar.
The Kayelekera project hosts a current resource of 51.1-million pounds of uranium oxide, and historically produced about 11-million pounds of uranium between 2009 and 2014. The company completed a positive restart study, which has determined an ore reserve of 23-million pounds and demonstrated that Kayelekera can support a viable operation.
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