Lotus Resources Signs Mercuria Funding Documents as Kayelekera Nears First Uranium Export

• Key full form documents signed with Mercuria Energy Trading S.A. for a marketing platform covering up to 3 million pounds of U3O8 over 30 months and an inventory-backed prepayment facility of up to US$30 million.
• Lotus intends to begin using the prepayment facility from its first uranium shipment.
• Namibian transport approvals received from two government ministries, with transport approval from the National Radiation Protection Authority (NRPA) the only key permit outstanding.
• First shipment of four containers, holding approximately 144k lb of U3O8, is packed and awaiting dispatch.
• Approximately 100k lb of uranium produced over 31 operating days, with grid connection commissioning expected in the first quarter of 2027.

Lotus Resources Limited (ASX:LOT) is an Australia-based uranium producer focused on Africa. The company holds an 85% interest in the Kayelekera Uranium Mine in Malawi and 100% of the Letlhakane Uranium Project in Botswana. Kayelekera produced around 11 million pounds of uranium between 2009 and 2014 before being placed on care and maintenance, and Lotus restarted production at the mine in August 2025. Letlhakane hosts a Mineral Resource of 113.7 million pounds of U3O8.

Mercuria Marketing Agreement and Prepayment Facility Signed

Lotus has signed and executed key full form documentation with Mercuria Energy Trading S.A. for the marketing agreement and inventory-backed prepayment facility first announced in July 2026. The arrangement covers the marketing of up to 3 million pounds of U3O8 (uranium oxide concentrate, commonly known as yellowcake) over 30 months, which averages about 100,000 pounds per month. Execution of the full suite of documents will complete the strategic funding package announced on 23 July 2026.

An inventory-backed prepayment facility allows a producer to receive cash against product it holds before that product is sold. Lotus intends to start using the facility from its first shipment to speed up cash receipts and support working capital, the funds needed to cover day-to-day operations. 

Managing Director Greg Bittar said:

“We are very pleased to be signing and executing full form documentation for the Mercuria marketing and inventory-backed prepayment facility which will provide additional balance sheet liquidity once shipments commence.”

Lotus is also in advanced discussions with several parties for the near-term sale of approximately 173k lb of earlier inventory that did not meet Orano CE’s product specifications. Most of this material was produced during the early stages of commissioning, and product quality has since improved materially as optimisation work has been implemented.

Namibian Export Permitting Nears Completion

Lotus’s export route runs from Malawi through Zambia to Namibia, then via the Port of Walvis Bay to Orano CE’s conversion facility in France, where yellowcake is processed into a form that can be enriched for nuclear fuel. Approvals already received include those from the Malawian Atomic Energy Regulatory Agency, a Zambian transport licence obtained through logistics partner Alistair Group, and transport approvals from Namibia’s Ministry of Environment, Forestry and Tourism and Ministry of Industries, Mines and Energy.

The NRPA has also authorised warehouse storage at Walvis Bay, leaving its transport approval as the final key permit. 

Managing Director Greg Bittar, who met with the NRPA in Windhoek in early October alongside Chairman Michael Bowen, said:

“This will represent a terrific milestone for Lotus and will complete the permitting process required across three jurisdictions.”

Once the NRPA transport approval is received, the remaining permitting tasks will consist of standard notifications and approvals for each individual shipment. Lotus is preparing its first shipment of four containers, representing approximately 144k lb of U3O8, which is packed and awaiting dispatch from site.

Acid Plant and Grid Connection Works Progress

Sulphuric acid is used at Kayelekera to dissolve uranium from crushed ore, a process known as leaching. The site’s acid plant is producing high-quality, high-concentration sulphuric acid at approximately 50 to 60% of its design capacity. With regional acid market conditions limiting the availability of reliable outside supply, the plant has improved Kayelekera’s acid supply security and reduced its reliance on external suppliers.

Since processing resumed in mid-August, Kayelekera has produced approximately 100k lb of drummed uranium over 31 operating days, with September showing material improvements in uranium recoveries. Onsite power generation issues have largely been addressed through targeted maintenance and component replacement, and additional rental generators are being brought to site to improve power reliability. In the near term, uranium production is expected to broadly align with acid production levels.

Further optimisation work on the acid plant, together with full furnace repair works, is planned for early 2027 to lift output towards nameplate capacity, the level the plant was designed to deliver. Substation construction at both Kayelekera and Karonga, the tie-in point to Malawi’s national grid, is well advanced, and transmission line works are progressing. Grid connection commissioning is expected in the first quarter of 2027.

Milestones and Next Steps

Upcoming milestones for Lotus include receipt of the final NRPA transport approval, dispatch of the first shipment and the first use of the Mercuria prepayment facility. The company also expects to execute the full suite of Mercuria documents and finalise the sale of its off-specification inventory. In early 2027, Lotus plans to commission the grid connection and complete the acid plant optimisation and furnace repair works.

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