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Lotus Resources (ASX:LOT) prepares to raise funds

The Market Online Deal Room
ASX:LOT      MCAP $460.7M
01 September 2022 16:46 (AEDT)

Australian cash underneath a piggy bank. (Source: file)

Lotus Resources (LOT) has entered a trading halt as the company prepares to undertake a capital raise.

Trading of LOT shares will be paused until Monday, September 5, by which time the company would have released further details about the funds it is looking to raise.

Whilst it is not yet known where the funds will be directed, last month the company released the results from its definitive feasibility study (DFS) for the restart of the Kayelekera uranium project in Malawi.

The DFS found the project was one of the lowest capital costs uranium projects globally, with the ability to quickly recommence production.

At the time of the announcement, Lotus said it was working with the Malawian government to secure a mine development agreement to support the project’s financing.

It was also progressing activities to secure offtake agreements and funding for the restart.

Whilst it is not guaranteed this is where the funds will be directed, it could be a likely candidate.

Shares in the company last traded at 29.5 cents each on August 31.

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