19 October 2023
ASX-listed Lotus Resources has received regulatory approvals, a key condition precedent to implementing its proposed schemes of arrangement with investor A-Cap, from the Botswana authorities.
Under the terms of the schemes, Lotus will acquire 100% of A-Cap’s issued shares and listed options.
Botswana Mines and Energy Minister Lefoko Maxwell Moagi noted in a written approval that there was no objection to the intended change in shareholding of the Letlhakane mining licence and prospecting licence. Botswana’s Competition and Consumer Authority also unconditionally approved the proposed transaction.
“This approval is a major step towards the schemes progressing to the next stage. We are excited to continue to work with the Botswana government to bring the Letlhakane uranium project into production, ensuring the positive impacts of this project are felt at all levels in the country.
“We are fully funded to complete our previously announced Kayelekera project activities [in Malawi] and plan to implement the initial phase of the Letlhakane project activities after implementing the transaction and receiving A-Cap’s remaining cash,” Lotus MD Keith Bowes said on October 18.
A-Cap meetings to approve each scheme will be held on Friday, October 20, with the second court hearing expected a week later, and the implementation date expected in early November. Once implemented, Lotus will hold mineral resources of 241-million pounds of triuranium octoxide, the third-largest uranium resource of any company listed on the ASX.
Lotus noted that the uranium spot price increased during the September quarter from a low of $55.40/lb to finish the quarter at $73.50/lb, a 33% increase and a multiyear high. The UxC long-term price increased by $5/lb to $61/lb over the quarter.
These price levels are supportive of Lotus’ near-term Kayelekera redevelopment, and Lotus continues to focus its efforts on redevelopment activities, including finalising a Mine Development Agreement with the government of Malawi.
