Lotus Resources (ASX:LOT) signed a binding contract with a North American power utility for the sale and purchase of 600,000 pounds of uranium from its Kayelekera uranium project in Malawi for 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.

A fixed-price escalation percentage per annum applies from the time of the first delivery for subsequent delivery years, with the amount in line with the Reserve Bank of Australia's long-term inflation target.

Its offtake arrangements now represent the sale of up to 3.2 million pounds of uranium to be produced at the project from 2026, per the filing.

It is engaging with potential offtake customers, focusing on North American nuclear power utilities, for offtake agreements for more substantial volumes from the project.