PERTH (miningweekly.com) – ASX-listed Paladin Energy on Monday announced that the sale of its 85% interest in the Kayelekera uranium project, in Malawi, will now be subjected to additional obligations set by the Minister of Natural Resources, Energy and Mining.
The additional obligations, which include the provision of further tax reporting information, corporate social responsibility and environmental assurances and responses to labour-related queries, will need to be met prior to consent being granted for the sale of the asset.
Paladin in June this year struck an agreement with Lotus, a subsidiary of Hylea Metals, to divest of its interest in the project for A$5-million, made up of A$200 000 in cash and A$4.8-million worth of Hylea shares. Paladin will also receive a 3.5% royalty on revenues derived from future production at Kayelekera, capped at A$5-million.
Paladin on Monday said it has provided information in response to the Malawi government’s request and will continue to work expeditiously to compile any remaining information in order to facilitate government consent for the transaction as soon as possible.
Kayelekera was idled in 2014 on the back of low uranium prices. The project includes a 1.5-million-tonne-a-year processing facility and is estimated to host some 28.7-million pounds of uranium oxide.