Lotus Resources, a leading Africa-focused advanced uranium player, is undertaking a placement to strategic investors to raise US$30mn via the issue of new shares to support its work in Malawi and Botswana
The additional funds will enable Lotus to accelerate the restart works at its Kayelekera mine in Malawi and advance works at its Letlhakane project in Botswana.
Specifically, at Kayelekera the additional funds will allow Lotus to accelerate front end engineering and design activities, commit to long lead items and commence early works on site. The company is targeting an end 2025 restart, which will see it benefit from strong current and forecast uranium market fundamentals.
Elsewhere, at Letlhakane, the new proceeds will fast track delivery of a scoping study by funding infill drilling that will help optimise mine plan and upgrade Mineral Resource Estimate. Further details around the project are expected to be released soon.
Lotus managing director, Keith Bowes, remarked, “We are pleased to secure US$30mn via this placement, allowing us to accelerate our activities around the restart at Kayelekera and development plans at Letlhakane. The placement has attracted significant interest from high calibre strategic investors who share our bullish view on uranium market fundamentals, including Paradice who will now become a substantial shareholder in the company.
“Our key priority remains progressing restart plans for Kayelekera to benefit from the increased demand for Kayelekera product and current strong and increasing uranium prices, but we also recognise that moving forward quickly with Letlhakane will enhance the company’s valuation.”
