Lotus Resources (ASX: LOT | OTCQX: LTSRF) has launched a non-underwritten two tranche placement to raise A$110M (before costs) at A$0.25 per share to power ahead with the accelerated restart of its Kayelekera Uranium Project in Malawi.
CEO, Greg Bittar, commented: “We are seeing terrific overseas institutional interest in Lotus and our plans to be the next global uranium producer with the accelerated restart plan for the Kayelekera Uranium Project and development plans for our larger Letlhakane Uranium Project in Botswana.”
The funds will be raised from the placement for the capital investment and working capital associated with the restart of production at Kayelekera, positioning Lotus as the next global uranium producer in Q3 2025.
Tranche 1 of the placement is set to raise approximately A$66.9M/US$44.8M and tranche 2 of the placement, which is subject to shareholder approval, is set to raise approximately A$43.1/US$28.9M.
Overall, there was strong placement interest from a broad range of overseas and domestic institutional investors.
Lotus will use the proceeds from the Placement, together with its existing cash reserves, for the following:
- Restart capital required to see Kayelekera through to first production in Q3 2025; and
- Working capital to see Lotus through the commissioning and ramp up to steady state production at Kayelekera
- Further liquidity available through the conditional Curzon unsecured loan agreement
- A$15M to be raised via a non-underwritten Share Purchase Plan (SPP) (before costs) at A$0.25 per share will provide all existing eligible shareholders the opportunity to participate in the capital raising on the same terms as the Placement
- Placement and SPP issue price of A$0.25 per New Share represents a 20.6% discount to the last closing share price and a 15.7% discount to the five-day Volume Weighted Average Price (VWAP)
- Lotus will host a conference call today at 10am AWST / 1pm AEDT with details outlined in this announcement.
“This interest coupled with the significant activity in the global renewables and power industries involving uranium, presents the ideal time to secure the funding to see Lotus through to production in Q3 2025. The SPP provides existing investors the opportunity to participate on the same terms as the institutional and sophisticated investors.” Added Greg.
To read more about this, please visit www.lotusresources.com.au
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