Lotus Resources (ASX:LOT) has signed two term sheets for up to US$38.5 million ($61.46 million) to support the restart and ramp up of the Kayelekera Uranium Project in Malawi.
The term sheets have been signed with two South African Banks Standard Bank and First Capital Bank.
The first term sheet with both banks, for US$18.5 million, will be used for the purchase or refinance of equipment including cranes, vehicles, machinery, and other equipment.
Meanwhile, the second term sheet with Standard Bank, for US$20 million, will be used to finance working capital requirements until expected positive cashflow from production.
Lotus, which has a market capitalisation of $602.47 million, says these finance facilities provide the company with working capital liquidity and funding flexibility as it progresses the accelerated restart program.
CEO Greg Bittar says the financing banks provided these facilities on competitive pricing due to the quality of Kayelekera.
Lotus is also continuing to advance discussions related to additional contracts with North American power utilities.
Further, the company has two conditional uranium offtake arrangements with Curzon Uranium and PSEG Nuclear for Kayelekera, providing for the supply of 1.5 million pounds of uranium between 2026 and 2029 at an escalated fixed price.
The company is on track to restart uranium production at Kayelekera in Q3 2025, with all key items of equipment orders, construction crews and mobile equipment mobilised, as well as more than 200 personnel onsite.
Lotus Resources is an Africa-focused uranium player which owns an 85% interest in the Kayelekera Uranium Project and 100% of the Letlhakane Uranium Project in Botswana.
Write to Aaliyah Rogan at Mining.com.au
Images: Lotus Resources
