Lotus Resources (ASX:LOT) signed an additional binding contract with a large North American power utility for the sale and purchase of 600,000 pounds of triuranium octoxide from its Kayelekera project in Malawi from 2026 to 2029, according to a Monday Australian bourse filing.

The contract pricing is a fixed price denominated in US dollars, based on the published long-term prices of leading nuclear market research and analysis companies, less a non-material discount.

A fixed-price escalation percentage per annum applies from the time of first delivery for subsequent delivery years.

The firm continues to advance talks relating to a series of additional contracts with other nuclear power utilities as part of its offtake strategy. It is on track for the first uranium production at the project by the third quarter of the year.

Its shares fell 12% in recent trading on Monday, its lowest point since mid-2021.