- Lotus Resources (LOT) has received binding commitments to undertake a $12.5 million placement
- To raise the funds, 100 million shares will be issued to sophisticated and professional investors at 12.5 cents
- This price represents a 17.6 per cent discount to Lotus’ five-day volume-weighted average price
- Lotus will use the money to speed-up test work and complete a feasibility study at the Kayelekere Uranium Project in Malawi
- The money will also be used to evaluate rare earth exploration and fund the costs associated with care and maintenance at Kayelekera
- Lotus has ended the day 6.67 per cent in the red with shares trading at 14 cents
Lotus Resources (LOT) has received binding commitments to undertake a $12.5 million placement.
The company entered a trading halt on February 22 but did not disclose how much it would be raising or what it would use the funds for.
To raise the funds, 100 million shares will be issued to sophisticated and professional investors at 12.5 cents.
This price represents a 16.7 per cent discount to Lotus’ share price on February 19 of 15 cents and a 17.6 per cent discount to the five-day volume-weighted average price.
Lotus will use the money to speed-up test work and complete a feasibility study at the Kayelekere Uranium Project in Malawi.
The money will also be used to evaluate rare earth exploration, fund the costs associated with care and maintenance at Kayelekera and pay general working capital.
“Funds raised from this placement, in addition to existing cash reserves and proceeds yet to be received from the exercise of in-the-money options, could see the company fully funded through to early 2023,” Managing Director Keith Bowes commented.
“The company can now accelerate work on its re-start feasibility study, as well as ramp-up exploration on a number of near mine, high priority uranium targets in order to support an extension of mine lift beyond the current 14 years of estimated production,” he said.
“We also plan to undertake a low-cost assessment of the high-grade rare earth oxide Milenje Hills prospect later this year,” he added.
Lotus has ended the day 6.67 per cent in the red with shares trading at 14 cents in a $123 million market cap.