Lotus Resources Limited (ASX: LOT) today announced a comprehensive capital raising initiative totalling approximately A$95 million (before costs) aimed at supporting its operational and balance sheet reset for the flagship Kayelekera Project. Lotus Resources Limited is an Australian uranium development company primarily focused on its Kayelekera Uranium Project in Malawi and the Letlhakane Uranium Project in Botswana. The primary component of this funding is a fully underwritten pro-rata accelerated non-renounceable entitlement offer, managed by Canaccord Genuity (Australia) Limited, designed to raise approximately A$60 million. New shares will be offered at A$0.22 each, representing a significant 66.7% discount to the last closing share price of A$0.66.
Complementing the entitlement offer, Lotus Resources has secured a binding commitment from CVI Investments, Inc., for A$35 million via senior unsecured Convertible Notes, accompanied by Detachable Warrants. The combined proceeds from these offers are earmarked for critical capital expenditure and working capital requirements, facilitating the ramp-up of production at Kayelekera until the company achieves positive cash flow from operations. Funds will also address corporate expenditures, customer offtake obligations, and financing costs associated with the capital raise.
The capital injection arrives as Lotus addresses operational challenges at Kayelekera, which led to a temporary production suspension due to reagent supply issues and necessary acid plant repairs. Interim repair works on the acid plant have been completed, with production restart targeted for early August 2026. The company is focusing on processing optimisation, renegotiating second-half calendar year 2026 delivery commitments, and resetting its balance sheet. Lotus aims for first customer deliveries in the fourth quarter of calendar year 2026, pending final export approval. Shareholder approval for the CVI investment is slated for an extraordinary general meeting in August 2026, while the company also progresses a US$30 million Mercuria inventory financing facility.
