Lotus Resources Ltd (ASX:LOT) has added $25 million to the war chest with a successful share placement, clearing the financial runway to accelerated development at the Kayelekera Uranium Project in Malawi.
The placement was supported by sophisticated, professional and institutional investors both domestically and internationally, reflecting what the company describes as ‘strong investor interest’ in the project.
Of particular note were several specialist uranium investors, whose expertise and investment Lotus considers a strong endorsement.
“Significant validation” for restart strategy
“We are very pleased to have received such strong support for the placement which will enable us to progress offtake negotiations with the various utilities and project funding during a period of significant support for nuclear energy globally,” Lotus Resources managing director Keith Bowes said.
“In particular, the demand received from global sector specialists during the bookbuild provides significant validation for the company’s restart strategy and underscores the value of the project as one of the nearest-term producers globally.
“I’d also like to thank our existing shareholders for their strong, ongoing support, and welcome all our new shareholders aboard.
“We look forward to providing further updates on our activities in the coming weeks and months.”
Lotus intends to apply the proceeds of the placement to:
- progress the development of the Kayelekera Project, including finalising the Mine Development Agreement (MDA), advancing offtake negotiation, Front End Engineering Design (FEED) and project financing prior to a Final Investment Decision (FID);
- fund the final instalment of rehabilitation bond repayment to Paladin Energy (ASX:PDN) Limited in March 2023; and
- conduct general maintenance and progress corporate costs for a period of at least 18 months (2024)