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Environment|PROJECT|Projects|Resources|Operations
environment|project|projects|resources|operations

Lotus takes a bigger stake in Kayelekera

25th March 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Lotus Resources has increased its ownership in the Kayelekera uranium project, in Malawi, to 85%.

The company told shareholders that it had reached an agreement with Kayelekera Resources to exercise its rights over an additional 20% interest in the uranium project.

Under the terms of the agreement, Lotus would issue 226.4-million of its own shares to Kayelekera Uranium as consideration for this acquisition.

“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 uranium oxide. Consolidating the ownership of Kayelekera is an important milestone for the company as it positions for a recommencement of operations in an improving price environment,” said Lotus chairperson Michael Bowen.

“With work on the restart feasibility 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.”

Lotus shareholders are expected to meet in June to vote on the issue of shares to Kayelekera Resources.

Edited by Creamer Media Reporter

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