Lotus raises A$65m to support uranium growth plans
ASX- and OTCQX-listed Lotus Resources has raised about A$65-million through a strongly supported placement, extending its liquidity runway as it ramps up operations at the Kayelekera uranium project in Malawi and advances its Letlhakane project in Botswana.
The placement attracted firm commitments from existing shareholders and new global and domestic institutional investors. Lotus directors have also committed about A$230 000, subject to shareholder approval.
Proceeds will provide additional working capital for Kayelekera, strengthen the balance sheet to allow flexibility in offtake and inventory strategies, and fund the progression of Letlhakane.
“After achieving first production at Kayelekera on budget and on schedule in the third quarter, we now look to ramp up operations to steady-state production. At the same time, we are investing in value-enhancing initiatives such as the electricity grid connection, the accelerated build of the tailings storage facility and the owner operated mining fleet,” said Lotus CEO Greg Bittar.
He added that shareholder support “provides Lotus with greater working capital and balance sheet flexibility as we move through to steady state production and build uranium inventory. This provides further runway for us to capture upside from the increasingly bullish uranium market outlook.”
“Achieving this at Kayelekera will provide a strong foundation and funding for advancing Letlhakane’s development, enabling Lotus to become a globally significant, multi-asset uranium producer.”
The placement will see the issue of about 342-million new shares at A$0.19 each, representing a 15.6% discount to the last closing price. Settlement is scheduled for September 10, with trading in Lotus shares resuming on September 4.
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