Uranium

The ASX has granted Lotus Resources a waiver of ASX listing rule 14.7 which provides an extension of two weeks, to 13 March 2020, for the company to complete the Kayelekera acquisition.

The Extension is to enable the company to issue the Initial Consideration Shares and the Second Placement securities on or before 13 March 2020, being more than 3 months after the shareholder meeting to approve the acquisition, rather than having to convene another general meeting to re-seek the already obtained approval.

Lotus announced in June 2019 that it would acquire an indirect 65% interest in the Kayelekera project, by way of Lily Resources acquiring 85% of the shares in Paladin’s subsidiary Paladin (Africa).

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Lotus holds 76.5% of the shares in Lily and Kayelekera Resources holds 23.5% of the shares in Lily, giving Kayelekera Resources an indirect 20% interest in the Kayelekera project, with the remaining 15% of PAL shares retained by the Malawi Government.

As announced on 20 December 2019, the Company has obtained Malawi’s Minister for Natural Resources, Energy and Mining’s Statutory Consent for the Acquisition.

As noted in the Company’s Quarterly Report for the December 2019 quarter, the key remaining consent required is the contractual consent from the Minister for Natural Resources, Energy and Mining and the Minister of Finance, Economic Planning and Development.

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The company expects receipt of this consent in coming days.

Once the Contractual Consent has been received, Completion remains subject to:

  • the consent of the Malawi Reserve Bank for the transfer of certain loans and receivables; and
  • various other conditions precedent which are within the control of the parties and will be satisfied on the day of completion.

Accordingly, the company expects that:

  • the remaining conditions will be satisfied; and
  • Completion and issue of the Second Placement securities will occur, on or before 13 March 2020.

The Company confirms that the Vendor (Paladin Energy Limited) has consented to the Extension.

This announcement has been authorised for release by the Company’s Board of Directors.

Highlights

  • ASX have granted an extension to Lotus for two weeks to 13 March 2020 to complete the Kayelekera acquisition by waiver of ASX Listing Rule 14.7.
  • The extension will allow the Company to issue the Initial Consideration Shares and the Second Placement securities on or before 13 March 2020, being more than 3 months after the Meeting rather than having to convene another general meeting to re-seek the already obtained approval.
  • Contractual consent from the Minister for Natural Resources, Energy and Mining and the Minister of Finance, Economic Planning and Development is expected in coming days.
  • The Company expects the remaining conditions will be satisfied and completed on or before the 13 March 2020.
  • Completion and issue of the Second Placement securities will occur on or before 13 March 2020.