Lotus Resources Limited (ASX: LOT | OTCQB: LTSRF) is undertaking a placement to strategic investors to raise A$30M via the issue of 100M new shares at A$0.30, a 6.5% discount to its last traded price of A$0.32.
Settlement is expected to take place on 28 February 2024 and allotment of the new shares on 29 February 2024.
Canaccord Genuity (Australia) Ltd has been appointed as lead manager to the placement, whilst BW Equities is acting as Co-Manager.
Lotus managing director, Keith Bowes commented, “We are pleased to secure A$30M via this placement, allowing us to accelerate our activities around the restart at Kayelekera and development plans at Letlhakane. The placement has attracted significant interest from high calibre strategic investors who share our bullish view on uranium market fundamentals, including Paradice who will now become a substantial shareholder in the company.”
In addition to the placement, the strategic investors will also acquire 6M shares from managing director Keith Bowes and 4.7m shares from non-executive Director Grant Davey who are selling down for tax obligations. Post the placement and the sell down, Mr. Davey will maintain a ~8% interest in Lotus holding ~150M shares, while Mr Bowes will hold ~15M shares.
Lotus continues to target Kayelekera operation restart in Q4 2025, and the placement funds will ensure the delivery of this, as well as allowing the acceleration of the programme through the ordering of long-lead items and undertaking necessary onsite early works.
To find out more, please visit www.lotusresources.com.au
To read more articles like this, please visit www.theassay.com/news
