Lotus signs uranium mine development agreement with Malawi Government

This Agreement ensures the mine will operate under a stable fiscal regime and provides the necessary confidence to investors.

Highlights

• MDA secures a stable fiscal regime for the operations.
  • MDA guarantees a Stability Period of 10 years during which the Project will not be subject to any detrimental changes to the fiscal regime.
  • Key tax terms are aligned with the Restart DFS assumptions, including royalty rate of 5% and corporate tax rate of 30%.
  • Relief provided on Resource Rental Tax and Withholding Tax, specifically as it applies to dividends to non-residents.
  • Exemptions for import and export duties, excise and VAT on capital goods and specified consumables directly related to mine production.
  • MDA includes internationally recognised principles relating to legal protection on security of tenure, dispute resolution and expropriation.
• MDA demonstrates the commitment by the GoM to develop the local mining industry, a key pillar of Malawi 2063, their new economic vision.
  • Rio Tinto’s increased shareholding in Sovereign Metals, which holds another key mining project in Malawi, also indicates the increased attractiveness of Malawi as a mining destination.
• Lotus has a cash balance of US$34.1 million (unaudited), exclusive of restricted cash of US$15.0 million, on 30 June 2024.

Lotus Managing Director Keith Bowes commented: “We are extremely pleased to have finalised our MDA with the Malawian Government. I would like to thank all parties involved in these negotiations, especially the Presidential Delivery Unit who were instrumental in finalising the agreement. The relevant ministries including mining, finance, and justice have all been very supportive in our negotiations as we have gone through multiple iterations of the MDA. It has been a timely conclusion to these negotiations as we have seen increased demand for the Kayelekera product from a number of utilities which coincides with the current perceived shortages and strong prices in the market. With the completion of the MDA, we can now move ahead quickly with concluding some of our offtake discussions.”

Read the article online at: https://www.globalminingreview.com/exploration-development/02082024/lotus-signs-uranium-mine-development-agreement-with-malawi-government/