Uranium producer Lotus Resources Ltd. has launched a AU$76 million share placement to support its efforts to ramp up to steady state production in its Kayelekera uranium mine in Malawi.
In addition to the placement, Lotus will also conduct a share purchase plan to raise up to AU$5 million.
The company will issue 35.4 million new shares at AU$2.15 per share, which will be settled on February 11.
Lotus CEO Greg Bittar said: “As we continue to ramp up production at Kayelekera, the proceeds of this raise provide Lotus with an enhanced liquidity runway during ramp up to reach steady-state production and first shipment in the second quarter of 2026.
“The increased liquidity delivers balance sheet flexibility and funding certainty as Kayelekera progresses through ramp up to positive cash flow, allowing us to retain a disciplined, patient offtake approach and maximising exposure to potential uranium price upside.”
Bittar explained that the company is seeking to capitalise on the supportive uranium market outlook.
The company is targeting monthly nameplate production of approximately 200,000 pounds per month in the second quarter. Advanced product qualification assessment is ongoing, with initial samples meeting required product specifications.
The first shipment of product is expected to occur in the second quarter, subject to product qualification, final product preparation, testing, and permitting, with first cash receipts targeted in the third quarter.
The capital raising will also simplify Lotus’ balance sheet with cash of AU$145 million supporting the execution and completion of the acid plant and grid connections at Kayelekera.
The funds also support the typical five-to-six-month uranium working capital cycle, with potential for additional liquidity available if required.
