The project is currently owned, indirectly by Lotus (65%), the Government of Malawi (15%) and Kayelekera Resources Pty Ltd (KRPL) (20%), an entity controlled by Lotus director Grant Davey.
Pursuant to its shareholders agreement with KRPL, Lotus has the right to acquire all of KRPL's shares in Lily Resources Pty Ltd (Buy-Out Right) – the incorporated joint venture between KRPL and Lotus – for an agreed, or independently determined price.
The company intends to exercise the Buy-Out Right and has formed an independent committee of the Lotus board to manage the implementation of the acquisition.
Completion of the acquisition will require the approval of Lotus shareholders.
Following the completion of the acquisition, Lotus will hold an 85% interest in the project and the Government of Malawi 15%.
Lotus has appointed Michael Bowen as non-executive chairman and Mark Hanlon as non-executive director of the company, effective immediately.
Bowen is a partner of the national law firm Thomson Geer and practices primarily corporate, commercial and securities law with an emphasis on mergers, acquisitions, capital raisings and resources.
He is also a non-executive director of ASX listed company Omni Bridgeway Limited, where he is chair of the remuneration committee and a member of the audit and risk, corporate governance and nomination committees.
Bowen has been admitted as a barrister and solicitor of the Supreme Court of Western Australia since 1979 and is also admitted as a solicitor of the High Court of Australia.
Hanlon is currently a non-executive director with ASX listed company Red River Resources Limited where he also chairs the audit and risk committee.
He is also non-executive chair of ASX listed company, Copper Strike Limited.
John Sibley and Stuart McKenzie have stepped down from the board.
Lotus is in trading halt regarding a capital raising.
The halt will remain in place until Wednesday February 24 or when an announcement is made to the market, whichever occurs earliest.