Lotus Resources limited (ASX: LOT) is a uranium developer and mineral exploration company which owns the Kayelekera Uranium Project located in Malawi, capable of re-opening very quickly, as soon as 15 months from a Final Investment Decision. The uranium project also has a very low initial capital cost and a mine life of 10 years. Its objective is to become a long-term, meaning, in the company’s words “multi-decade” or 20 plus year uranium supplier, to global utility providers, enhancing its negotiating power.
Investment Summary
Low cost, rapid response uranium producer, capable of taking advantage of the rising Uranium price with speed. Potential to expand through both mergers and exploration, and provides exposure to the uranium price.
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Lotus Resources Current operations - Kayelekera Uranium Project
The kayelekera Project development is located in Malawi, a landlocked East African country. A joint venture with the Government of Malawi (15%), the project was put into care and maintenance in 2014 due to low uranium prices, but its restart is forecasted to be one of the fastest (15 months) and lowest capital cost (US$88m) uranium projects in the world. it has a forecast 10 year mine life, with exploration potential to expand the project.
As a part of this potential expansion, the company also owns the nearby Livingstonia Uranium deposit for a combined 51.1Mlbs U3O8.
Future Expansion
Lotus resources limited is adding another sub-Saharan uranium project to its stable with a merger with fellow ASX listed uranium developer A-Cap Energy (ASX: ACB) via a scheme of arrangement. The mineral exploration goal being to "Create a leading African-focused Uranium company with long term supply potential," ultimately diversifying the company beyond the Kayelekera resource, and merging two complementary projects under one management team.
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