Lotus Resources (ASX:LOT) has signed term sheets for up to AU$38.5 million in financing to support the restart and ramp-up of its Kayelekera uranium project in Malawi, according to a Tuesday filing with the Australian bourse.

The financing package includes two equipment finance term sheets for a total of up to AU$18.5 million with Standard Bank and First Capital Bank, the filing said.

These funds will be used to purchase or refinance essential equipment, such as cranes, vehicles, and machinery, the filing added.

Additionally, Lotus has secured an AU$20 million working capital facility with Standard Bank to cover operating costs until the project generates positive cash flow from uranium production, the company said.

Lotus's total current funding now stands at AU$135.5 million, the filing added.

The term sheets for equipment financing and working capital include secured overnight financing rate-based interest rates, arrangement fees, equipment security, and repayments.

The transactions are subject to credit approval and customary conditions. Production at the site is expected to resume in the third quarter of the year, per the filing.

Shares of the company plunged 21% in recent Tuesday trade.