Lotus Resources has secured two offtake arrangements to advance its Kayelekera uranium project in Malawi, Africa.
The uranium developer has signed a binding agreement and term sheet with PSEG Nuclear for the sale of triuranium octoxide, a compound of uranium.
The term sheet is non-binding and dependent on the finalisation of a definitive sale and purchase agreement within four months and Lotus proceeding with Kayelekera’s restart.
Lotus has also signed a binding agreement with Curzon Uranium, which is contingent on Lotus completing an equity raise in conjunction with Kayelekera’s restart, and a $US15 million ($22.3 million) loan facility.
Together, these agreements represent the sale of 1.5–1.8 million pounds of uranium produced at Kayelekera from 2026 to the end of 2032.
Lotus said both offtake arrangements provide commercial flexibility for Kayelekera’s key production restart milestones and early-stage production levels.
“Our first two sales contracts, coupled with unsecured financing with significant drawdown flexibility, mark a terrific milestone for Lotus and our Kayelekera project, demonstrating customers’ confidence in the strength of the uranium market as well as providing a strong endorsement of our plans for the project,” Lotus chief executive officer Greg Bittar said.
The agreements with PESG Nuclear and Curzon Uranium are the first of several initial offtake arrangements Lotus expects to secure.
The company is currently advancing discussions with several other North American nuclear power utilities as part of its initial offtake strategy.
“Through the initial offtake and prepayment / funding discussions, we have established critical knowledge and a breadth of long-term industry relationships with multiple substantial strategic customers,” Bittar said.
“This will serve us well as we look to secure further contracts closer to the commencement of production.”
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