Funding in place for Lotus to restart Kayelekera production

The successful placement of A$130-million, along with A$25-million cash on hand at the end of September, as well as an imminent share purchase plan (SPP), have ensured that ASX- and OTCQX-listed Lotus Resources is fully funded to restart production at the Kayelekera uranium project, in Malawi, in the third quarter of next year, CEO Greg Bittar has said.

“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,” he said on November 6.

The additional SPP is expected to close on November 14, with a shareholder meeting scheduled for December 6 to approve the second tranche, ensuring the project is fully funded.

An on-site team of over 150 expatriate and local personnel has been recruited to accelerate the project’s development. The refurbishment of both camp facilities and plant infrastructure is currently under way.

Key long-lead equipment items such as a calciner, scrubber and screw feeder have been ordered, with substantial spares and other essential inventory already secured on site.

Lotus has also repaired and recommissioned several key pieces of equipment, including transformers, an apron feeder, mineral sizer, conveyors, the pre-leach thickener and the fire water system.

The engineering, procurement and construction management (EPCM) contract has been awarded to manage the acid plant’s relocation and refurbishment. Additionally, the company has appointed key personnel to lead operations.

Further early works include camp infrastructure upgrades, such as water treatment, sewage systems and accommodation enhancements. Orders for essential equipment like a calciner, scrubber and screw feeder for the drying and packaging plant have been placed, alongside tools and mobile plant equipment such as manlifts and telehandlers.

The company has also acquired 70 t and 200 t cranes, which will support construction and operations.

The project’s workforce is expected to expand as work progresses, ensuring the mine restarts on schedule. To bolster safety efforts, Lotus has appointed three dedicated safety experts and third-party specialists to encourage a safety-focused culture.

The company is also advancing on several fronts, including the design package for the drying and packaging plant and civil works for the acid plant relocation, expected to begin before the end of the year.