Lotus Resources Limited (ASX: LOT, 'Lotus' or 'the Company') is pleased to announce that it has successfully completed the acquisition of Kayelekera Uranium project in Malawi from Paladin Energy Ltd (ASX: PDN, or 'Paladin').

Accordingly, the Company has today: (a)	Completed the Second Placement securities by issuing 225,000,000 shares to raise $4,500,000 (before costs) today. The shares were issued at 2c per share along with 1 free attaching option for every 2 shares issued, with an exercise price of 4c and expiring in 3 years. The transaction was fully underwritten by BW Equities. (a) Paid US$4,000,000 to Paladin for the first instalment of the environmental bond repayment. (b) Issued 90,000,000 shares in Lotus (at deemed issue price of 2c per share to Paladin as the initial consideration (as announced 24 June 2019).

Paladin has paid Lotus US$2,000,000 as part of planned site restoration. This completion follows Lotus' announcement in June 2019, that it would acquire an indirect 65% interest in the Kayelekera project, by way of Lily Resources Pty Ltd (formerly Lotus Resources Pty Ltd) (Lily) acquiring 85% of the shares in Paladin's subsidiary Paladin (Africa) Limited (PAL).

Lotus holds 76.5% of the shares in Lily and Kayelekera Resources Pty Ltd holds 23.5% of the shares in Lily, giving Kayelekera Resources Pty Ltd an indirect 20% interest in the Kayelekera project, with the remaining 15% of PAL shares retained by the Malawi Government.

The Company will now work with Paladin to complete the responsible handover and looks forward to making a valuable contribution to the mining industry in Malawi. Until all the in-country processes have been completed Paladin has agreed to hold the project interest and loan receivables on trust for Lily.

This announcement has been authorised for release by the Company's Board of Directors.

Contact:

Simon Andrew

Tel: +61 (08) 9278 2441

About Lotus Resources

Lotus Resources Limited (LOT:ASX) is a minerals exploration and development company. The Company recently entered into an agreement with Paladin to acquire a 65% interest in the Kayelekera Uranium Project in Malawi. Lotus's owned asset is the Hylea Cobalt Project in the Fifield District of NSW. The Project represents a significant cobalt, platinum, nickel and scandium exploration target in both scale and grade potential, as demonstrated by the Company's 2018 drilling program.

(C) 2020 Electronic News Publishing, source ENP Newswire