Lotus Resources Announces Marketing Agreement and Export Permitting Progress
Key points
- Signed key documents for Mercuria marketing and inventory-backed prepayment agreement facility
- Export permits and approvals for uranium transport from Malawi to Namibia well progressed
- Discussions advanced for the sale of off-specification product inventory
Full summary
Lotus Resources Limited (ASX: LOT) has executed key documents for a marketing and inventory-backed prepayment agreement facility with Mercuria, providing up to 3.0 million pounds of U3O8 marketing platform and a prepayment facility of up to US$30 million. The company has also made significant progress on export permits for uranium transport from Malawi to Namibia, with approvals received from Namibia's Ministry of Environment, Forestry and Tourism and the Ministry of Industries, Mines and Energy. Discussions are well advanced for the sale of off-specification product inventory, with recent product quality improving materially. The acid plant is currently operating at approximately 50-60% of design capacity, with further optimization work planned to reach nameplate capacity. Uranium production is expected to broadly align with acid production, reflecting current acid availability constraints and unfavorable market conditions.
Outlook
The company is looking forward to finalizing the export permits and completing the sale of off-specification product inventory, which will enhance liquidity and working capital.
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