Lotus Resources launches $110m capital raising in uranium push
Explorer Lotus Resources is looking to latch on to the latest burst of investment interest in uranium and raise $110 million from investors to restart a project in Malawi.
Up to 440 million new shares have been offered up to sophisticated and institutional investors at 25¢ apiece under the placement launched on Tuesday, a 20.6 per cent discount on the Lotus’ last close.
The listed company wants to use the cash to cover the costs of restarting Kayelekera project in Malawi by the third quarter of 2025 by catching a tailwind of renewed interest in uranium and its role in decarbonisation via nuclear power.
Lotus owns 85 per cent of Kayelekera, which it says already has a plant and infrastructure in place and will have a 10 year mine life producing about 19.3Mlb of uranium over the decade.
Funds will be secured in two tranches via the placement to new investors as well as a follow-up non-underwritten share purchase plan to existing shareholders.
Macquarie Capital and Jett Capital Advisors are joint lead managers to the placement.
Lotus shares last changed hands at 32¢.
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