Lotus Resources has reached agreement with Kayelekera Resources (KRPL) to exercise its right to acquire an additional 20% of the Kayelekera Uranium Project, the completion of which will see the Company’s interest in Kayelekera increase to 85%.
The remaining 15% is held by the Government of Malawi.
Michael Bowen, Chairman of Lotus, commented:
“Kayelekera is one of only a small number of uranium projects with a demonstrated track record of operations, having operated successfully from 2009 to 2014, when it produced almost 11 million pounds of U3O8.
“Consolidating the ownership of Kayelekera is an important milestone for the Company as it positions for a recommencement of operations in an improving uranium price environment.
“With work on the Re-Start Feasibility Study progressing, the increase in ownership comes at a time when the uranium price and sentiment in the industry is improving due to an impending supply deficit. As a proven uranium producer, Lotus is well placed.”
Based on independent advice provided to the Committee, the Company will issue 226.4 million shares to KRPL as consideration for the acquisition of KRPL’s interest in Lily.