Lotus Resources has announced a campaign to raise $65 million to strengthen the restart of its Kayelekera uranium project in Malawi and advance the development of a “global multi-asset uranium producer” in Botswana.
“Firm commitments” are believed to have been received to raise the funds through the issue of 342 million ordinary shares, priced at $0.19, in addition to 1.2 million new shares given to company directors. Lotus has halted trading until Wednesday September 10 to allow for the settlement of new shares to be issued.
Lotus said there is strong demand from existing shareholders as well as new global and domestic institutional investors.
“After achieving first production at Kayelekera on budget and on schedule in Q3, we now look to ramp up operations to steady-state production,” Lotus chief executive officer (CEO) Greg Bittar said. “At the same time, we are investing in value enhancing initiatives such as … the owner operated mining fleet.
“The strong participation … provides Lotus with greater working capital and balance sheet flexibility as we move through steady state production and build uranium inventory.”
The focus now, Bittar said, is advancing the Letlhakane Uranium in Botswana, which is believed to have the potential to become a “large-scale, long-life” uranium project that can complement the company’s mine in Malawi.
A scoping study, completed in March, showed a mineral resource estimate (MRE) or 113.7 million pounds (Mlb) of contained uranium and is demonstrated to support annual uranium production of approximately 3Mlb of triuranium octoxide (known as yellowcake) over a 10-year life of mine.