SX-listed Lotus Resources has agreed to sell about 173 000 lb of off-specification uranium ore inventory to a US-listed global critical minerals company.
The company points out that the about 173 000 lb of ore was produced during the ramp-up phase at its Kayelekera mine, in Malawi, but was determined to be off specification, owing to some higher levels of product impurities and not, therefore, being deliverable to a converter at the time.
Since then, the company has considered a range of options to process, blend or sell this material and has now executed a sale and purchase agreement for the material on commercial terms.
Although the sale has been agreed at a discount to contract prices owing to its lower specification, the company says the free-on-board delivery terms at Walvis Bay, in Namibia, provide meaningful near-term liquidity that further supports the ramp-up and accelerates the company’s transition to positive operating cash flow.
The company is currently packaging this product for shipment and is targeting despatch from site within the next month to align with shipping schedules.
Source: Mining Weekly