Lotus Resources has secured full funding for the anticipated restart of the Kayelekera uranium project in Malawi, with production set to recommence in Q3 2025.
The financial foundation for the mine’s revival was established through a A$130m ($85.6m) placement, bolstered by a cash reserve of A$25m as of the end of September 2024, and a share purchase plan (SPP).
The first tranche of this placement has been settled, while the second tranche awaits shareholder approval, with the SPP set to close on 14 November 2024.
With the initial funding phase complete, Lotus is on course to meet its accelerated project development timeline.
Early works are under way, including upgrades to camp facilities such as water treatment, sewage systems and accommodation.
Orders have been placed for critical equipment for the drying and packaging plants, as well as construction tools and machinery.
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The procurement extends to heavy lifting equipment, with the acquisition of 70-tonne (t) and 200t cranes for the construction and operational phases.
Furthermore, Lotus is finalising contracts for the relocation and refurbishment of the acid plant, with civil works scheduled to commence before year-end. A design package for the drying and packaging plant is also set to be awarded.
Lotus has made strategic personnel acquisitions, hiring key operations management staff and assembling a workforce of more than 150 local and expatriate employees.
The company forsees further expansion of its team in the months ahead. This human resource development is integral to ensuring the project remains on track for its scheduled restart and subsequent operational phase.
Lotus Resources CEO Greg Bittar said: “The successful placement of A$130m, along with A$25m cash we had at the end of September and SPP, ensures that we are fully funded to restart Kayelekera production in Q3 2025.
“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.”
