Paladin Energy Limited, announced that it wishes to sell its 85% stake in the Kayelekera uranium mine to Hyle Metals, a subsidiary of Lotus Resources.

According to a statement released by Paladin, Kayelekera will be sold for $5 million, comprising $200,000 in cash and $4.8 million in Hylea shares to be issued to Paladin. This will include $1.8 million upon completion, which is subject to a 12-month voluntary escrow, as well as $3 million on the third anniversary of completion. On the other hand, Paladin Chief Executive Officer, Scott Sullivan, says selling its interest in Kayerekera will provide the company with additional capital and other resources available for that purpose and also eliminate the significant ongoing care and maintenance costs associated with Kayerekera.

Paladin suspended production at its Kayelekera Uranium Mine in 2014 for a care and maintenance exercise, with declining uranium prices on the global market prolonging the shutdown.

The Daily Times newspaper revealed that government was yet to respond to Paladin’s move, as government owns the remaining 15% stakes in the mine.