ASX-listed Lotus Resources raises $42mn to drive its Kayelekera uranium project in Malawi

About this update from Lotus Resources Limited

Perth -based Lotus Resources has raised $42mn , part of which it will spend on boosting working capital at its Kayelekera Uranium Mine in Malawi and advancing development of its Letlhakane project in Botswana . The company said it received firm commitments under the placement to institutional and sophisticated investors from the issue of around 342mn ordinary shares and 1.2mn new ones to company directors. According to a statement it issued on September 4 , Lotus, which is listed on the ASX, said the funding will also strengthen its balance sheet to allow flexibility in its offtake strategy, inventory accumulation and capital optimisation, as well as for general corporate purposes including meeting the costs of the placement. “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 CEO Greg Bittar said. 'At the same time, we are investing in value enhancing initiatives such as the electricity grid connection, the accelerated build of the tailings storage facility and the owner operated mining fleet.  The strong participation of existing and new institutional shareholders provides Lotus with greater working capital and balance sheet flexibility as we move through to steady state production and build uranium inventory.' Lotus, whose shares trade on the OTCQX as well, produced its first triuranium octoxide (U3O8) at its 85%-owned Kayelekera project in the southern African nation on September 1 . That was the final step in the commissioning of a processing plant at the mine, which had been mothballed by its previous owner in 2014.  The company said it plans to ramp up production at the asset to 2.4mn pounds of U3O8 per annum in the first quarter of 2026. The fundraiser, Lotus said in the September 4 release, provides further room for it to capture upside from the increasingly bullish uranium market outlook.  'Achieving this at Kayelekera will provide a strong foundation and funding for advancing Letlhakane’s development, enabling Lotus to become a globally significant, multi-asset uranium producer,” it added. © 2025 bne IntelliNews, source Magazine

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