Lotus Resources Limited Upsizes Capital Raise to Fund Kayelekera Uranium Project Restart

Highlights:

• Upsized Placement: Lotus Resources Limited (ASX: LOT) successfully raised AU$130 million (US$87 million) through a two-tranche placement, increasing the initial target of AU$110 million due to strong investor demand.
• Funding Project Restart: The funds will support the accelerated restart of the Kayelekera Uranium Project in Malawi, positioning Lotus as a key player in the global uranium market by Q3 2025.
• Share Purchase Plan: Alongside the placement, the company plans a Share Purchase Plan (SPP) aiming to raise up to AU$15 million, allowing eligible shareholders to participate at the same price of AU$0.25 per share.

AU$130 Million Placement to Accelerate Uranium Production

Lotus Resources Limited (ASX: LOT) has successfully completed the bookbuild for a non-underwritten two-tranche placement, raising AU$130 million (US$87 million) before costs at AU$0.25 per share. The funds will be used to accelerate the restart of the company's Kayelekera Uranium Project in Malawi, positioning Lotus as a key uranium producer by Q3 2025.

Strong Demand Leads to Upsized Placement

Initially targeting AU$110 million, Lotus increased the size of the placement to AU$130 million due to overwhelming demand from both existing and new institutional investors. The placement aims to support capital investments and working capital needed for the project's restart, solidifying Lotus' future in the uranium market.

At the time of writing, Lotus shares are expected to resume trading on the ASX today, 24 October 2024. The first tranche of the placement, amounting to AU$66.9 million, will settle on 28 October 2024, with shares trading on 29 October 2024. The second tranche, expected to raise AU$63.1 million, will be subject to shareholder approval at a meeting in early December 2024.

Share Purchase Plan to Raise Additional Funds

In addition to the placement, Lotus will offer a Share Purchase Plan (SPP) targeting to raise up to AU$15 million at the same price of AU$0.25 per share, allowing eligible shareholders to participate on the same terms as institutional investors.

CEO Greg Bittar expressed gratitude for investor support, stating, "The SPP offers existing shareholders the chance to join us in advancing the Kayelekera Uranium Project and becoming a global uranium producer by 2025."

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