The project hosts resource with an existing open pit mine and demonstrated metallurgical recoveries
Australia-based uranium production company, Paladin Energy has completed the sale of Kayelekera uranium project located in Malawi to Lotus Resources and Lily Resources.
Through the deal, Lotus Resources has acquired 65% stake, while Lily Resources has acquired 20% stake in the project.
Located in northern Malawi, 52km west (by road) of the provincial town of Karonga and 12km south of the main road, the project hosts resource with an existing open pit mine and demonstrated metallurgical recoveries.
The payment of A$5m ($3m), consisting of A$200k ($123.6k) in the form of cash has already been received by Paladin and a A$4.8M in Lotus Resources shares will be issued to uranium production company.
Paladin CEO Ian Purdy said: “The completion of the sale is a positive step forward for Paladin and one which will deliver significant financial benefits to the company.
“We can now prioritise our efforts and resources on maximising the value of our world class Langer Heinrich operation.
“We are also pleased to be a major shareholder of Lotus Resources Limited and look forward to their future success in adding value to the Kayelekera mine in Malawi.”
Paladin will pay Lotus $2m to fund planned site restoration
Under the terms of the agreement, Paladin will pay Lotus $2m to fund planned site restoration including water treatment in recognition of the recent record rainfall at the Kayelekera operations.
The company owns a 75% stake in the Langer Heinrich uranium mine.