ASX-listed Lotus Resources has appointed Orimco to arrange debt for its flagship Kayelekera uranium project, in Malawi, where the company intends to restart operations in late 2025.

Lotus says it chose debt adviser Orimco based on its demonstrated record, knowledge and experience arranging debt for resource projects in Africa and globally.

The mining company is seeking cost-effective debt to help fund the restart at Kayelekera.

The Kayelekera restart definitive feasibility study (DFS) estimated an $88-million upfront restart capital expenditure requirement to enable production of 2.4-million pounds of triuranium octoxide a year over a ten-year mine life.

Lotus will require an additional $40-million to $50-million in additional funding for preproduction costs and working capital, depending on uranium product payment terms.

The Kayelekera front-end engineering design (FEED) programme is accelerating.

A recently completed $30-million share placement has allowed rapid ramp-up of the planned FEED programme, which encompasses all aspects of detailed design to prepare Kayelekera for execution.

“Our appointment of a debt adviser is a key step in advancing Kayelekera towards [a final investment decision]. Orimco will assist Lotus in arranging cost-effective debt to help finance Kayelekera’s restart, while reducing dilution of existing shareholders. Orimco brings a high level of expertise and deal experience and we look forward to working closely with them.

“Our recent A$30-million placement to strategic investors has allowed Lotus to accelerate the Kayelekera FEED studies, while also providing sufficient funding to place orders for long-lead items and undertake the early work programmes so we can de-risk the refurbishment timeline and provide more confidence in achieving an end-2025 start date for the mine,” says MD Keith Bowes.