Lotus takes a bigger stake in Kayelekera

The company told shareholders that it had reached an agreement with Kayelekera Resources to exercise its rights over an additional 20% interest in the uranium project.

Under the terms of the agreement, Lotus would issue 226.4-million of its own shares to Kayelekera Uranium as consideration for this acquisition.

“Kayelekera is one of only a small number of uranium projects with a demonstrated track record of operations, having operated successfully from 2009 to 2014, when it produced almost 11-million pounds of uranium oxide. Consolidating the ownership of Kayelekera is an important milestone for the company as it positions for a recommencement of operations in an improving price environment,” said Lotus chairperson Michael Bowen.

“With work on the restart feasibility progressing, the increase in ownership comes at a time when the uranium price and sentiment in the industry is improving due to an impending supply deficit. As a proven uranium producer, Lotus is well placed.”

Lotus shareholders are expected to meet in June to vote on the issue of shares to Kayelekera Resources.