Australia-based resource company Paladin Energy has received the outstanding Ministerial consent for the completion of the sale of its 85% interest in its subsidiary, Paladin Africa, to Lotus Resources (65%) and Lily Resources (20%).
Paladin Africa wholly owns the Kayelekera uranium mine, in Malawi.
The completion of the sale is now subject to one final condition precedent, being Reserve Bank of Malawi approval, which is expected to follow Ministry consent and be received on or before March 13.
In a separate statement, Lotus indicated that the Australian Stock Exchange has granted an extension to the company for two weeks to March 13 to complete the acquisition.
Lotus will immediately proceed with Tranche 2 of the associated capital raising for capital to be available for the first payment on completion.
The company also indicated that it will work with Paladin to achieve a responsible handover of the mine site.
Selling Kayelekera will relieve Paladin of about $5-million a year in care-and-maintenance costs.
Following the sale, Paladin’s yearly cash burn is expected to be less than $10-million.