Lotus Resources (ASX:LOT) is fully funded for the restart of production at the Kayelekera Uranium Project in Malawi in the third quarter of 2025.
The $514.67 million market capitalisation company conducted a $130 million placement, with tranche one settled and tranche two subject to shareholder approval at a meeting next month.
As of 30 September 2024, Lotus had $25.015 million cash and cash equivalents at hand, according to its latest quarterly report.
Following the completion of the first tranche of the $130 million placement, Lotus is on track to deliver the accelerated restart project development schedule.
CEO Greg Bittar says the progress to date is clearly visible with a whole host of site activities and work streams focused on lifting the tailings storage, repairing, refurbishing, and recommissioning plant and equipment along with plant structural modifications.
“With a new team in place on site, safety is of utmost priority and so we have ensured the necessary management and supervision are in place to strive for a culture of and commitment to zero harm,” Bittar says.
Key early works and long lead orders include upgrading camp infrastructure, including water treatment, sewage systems and rooms, placing orders for calciner, scrubber, and screw feeder for drying and packaging plants, as well as ordering tools and mobile equipment and plant, including man-lifts and telehandlers for the construction crew.
Lotus will also purchase 70-tonne and 200-tonne cranes for construction and operation.
The company will also issue an engineering, procurement, construction, and management contract for acid plant relocation and refurbishment with civil works to begin before the end of the year. Additionally, Lotus will award a design package for the drying and packaging plant.
Further, key operations management personnel have been recruited, along with more than 150 persons combined local and expat workforce which is expected to grow in the coming months. Lotus says this will ensure the restart is completed on schedule and the company is ready for operations to begin.
The Kayelekera Project historically produced 11 million pounds of uranium between 2009 and 2014.
Lotus Resources is an Africa-focused uranium player that owns 85% of the Kayelekera Project and wholly owns the Letlhakane Project in Botswana.
Write to Aaliyah Rogan at Mining.com.au
Images: Lotus Resources
