Lotus raises A$76m to fund uranium production ramp-up
ASX- and OTCQX-listed Lotus Resources has successfully completed its bookbuild for a non-underwritten placement to raise A$76-million at A$2.15 a share, providing additional working capital to support the ramp up to steady-state uranium production.
The company, which owns the Kayalekera mine, in Malawi, and the Letlhakane project, in Botswana, received strong demand from both existing shareholders and new overseas and domestic institutional investors. Funds raised from the placement, together with a share purchase plan (SPP) targeting up to A$5-million, will provide enhanced balance sheet flexibility.
Lotus expects pro-forma unaudited cash to reach A$145-million, supporting the execution and completion of the acid plant and grid connection projects, which are designed to optimise operating costs.
The funds will also cover the typical five- to six-month uranium working capital cycle, with potential for additional liquidity through inventory pre-payment facilities currently under negotiation, if required.
As announced on February 5, Lotus also plans to undertake a non-underwritten SPP of up to A$30 000 per eligible shareholder, targeting to raise up to A$5-million at the same offer price per share as the placement.
“We are delighted with the support we have received from existing and new institutional shareholders, which provides us with an enhanced liquidity runway during ramp-up to reach steady-state production and expected first shipment in quarter two.
“The funding delivers a simplified, more flexible balance sheet, along with funding certainty as Kayelekera progresses to positive cash flow, and we are positioned to maximise exposure to potential uranium price upside,” Lotus MD Greg Bittar said on February 6.
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