Mining company Lotus Resources has received commitments for a non-underwritten two-tranche placement – at $0.16 per share – to raise approximately $87 million to expedite the restart of the Kayelekera uranium project in Malawi.
The restart plan is expected to take between eight and ten months and will be funded by capital raised through roughly $44 million in share placement as part of the first tranche. Under the second tranche, Lotus Resources will raise an additional $41.5 million through a Share Purchase Plan (SPP).
“The SPP provides existing investors the opportunity to participate on the same terms as the institutional and sophisticated investors,” stated Lotus Resources CEO Greg Bittar, adding, “We look forward to advancing Kayelekera and delivering on our vision of becoming the next global uranium producer in 2025.”
Under an offtake agreement signed earlier this year, Lotus Resources will supply roughly 900 tons of uranium to trading company Curzon Uranium and utility company PSEG Nuclear from 2026 to 2032.
