Articles can be saved for quick future reference. This is a subscriber benefit. If you are already a subscriber, please log in to save this article. If you are not a subscriber, click on the View Subscription Options button to subscribe. A restart definitive feasibility study confirmed Kayelekera as one of the lowest capital-cost uranium projects worldwide while having the ability to quickly restart production once a final investment decision has been made.
The DFS is based on an ore reserve estimate of 15.9-million tonnes at 660 parts per million uranium for 23-million pounds of uranium. Average production is estimated at 2.4-million pounds of uranium a year over a 9.5-year life-of-mine . The LoM includes four years of stockpile treatment.Lotus Resources has appointed debt adviser Orimco to arrange debt for the project.
Orimco was chosen because of its demonstrated record, knowledge and experience in arranging debt for resource projects in Africa and globally. Lotus is seeking cost-effective debt to help fund the restart at Kayelekera. It will require an additional $40-million to $50-million in additional funding for preproduction costs and working capital, depending on uranium product payment terms.A recently completed $30-million share placement has allowed for the rapid ramp-up of the planned FEED programme, which encompasses all aspects of detailed design to prepare Kayelekera for execution.