- Lotus Resources (LOT) renews the mining and exploration licences for its 85-per-cent owned Kayelekera Uranium Project in Malawi
- The mining license has been signed off by the minister for mines, granting Lotus mining rights at the project for another 15 years
- Managing director Keith Bowes says the renewal will also benefit the local community through employment and profit sharing with Malawi's government
- Shares are down 5.93 per cent at 27.8 cents at 12:00 pm AEST
Lotus Resources (LOT) has renewed the mining and exploration licences for its 85-per-cent-owned Kayelekera Project in Malawi.
Kayelekera has a resource of 27.1 million tonnes triuranium octoxide and is 15-per-cent-held by the Malawi government.
In a statement today the company said its mining license had been signed by the country's minister for mines on September 1, renewing its rights for a further 15 years.
LOT's managing director Keith Bowes said the company was delighted to receive the extension.
"This is a critical step, as it provides certainty and confidence to our investors that Lotus has the full backing of the government to continue our on-going development of Kayelekera, as we position the project to be one of the first assets to recommence production in an ever- improving uranium price environment," he said.
"It is important to highlight that a restart of operations also provides significant benefits to the local communities and Malawi as a whole through employment, development of local communities, taxes, royalty streams and profit share to the Government of Malawi, which is a 15 per cent owner in the project."
Despite the announcement, shares were down 5.93 per cent at 27.8 cents at 12:00 pm AEST.