Lotus Resources Limited (ASX: LOT), an Africa-focused uranium producer with significant scale and Mineral Resources, has announced a non-underwritten placement to raise approximately A$76 million before costs. The funds will provide additional working capital to support the ramp-up to steady-state production at the Kayelekera Uranium Mine. The offer price is A$2.15 per share, representing a 25.3% discount to the last closing price on Wednesday, 4 February 2026.
In addition to the placement, Lotus Resources will conduct a non-underwritten share purchase plan (SPP) to raise up to A$5 million. This SPP will allow eligible existing shareholders to apply for up to A$30,000 worth of new fully paid ordinary shares at the offer price. The company aims to simplify its balance sheet with pro-forma unaudited cash of A$145 million, supporting the execution and completion of the acid plant and grid connection projects to optimise operating costs.
The company is targeting monthly nameplate production of approximately 200,000 pounds per month in Q2 CY2026. Advanced product qualification assessment is ongoing, with initial samples meeting required product specifications. The first shipment of product is expected to occur in Q2 CY2026, subject to product qualification, final product preparation, testing, and permitting, with first cash receipts targeted in Q3 CY2026.
CEO Greg Bittar stated the proceeds would provide Lotus with enhanced liquidity during ramp-up to reach steady-state production. Macquarie Capital and Canaccord Genuity are acting as joint lead managers to the placement. Eligible shareholders should review the SPP terms and conditions fully before deciding whether to participate in the SPP.
