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Lotus Resources (ASX:LOT) completes $25m placement to fund Kayelekera, Malawi – The Market Herald

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  • Lotus Resources (LOT) Raises $25 Million in Placement to Fund the Development of its Kayelekera Project in Malawi
  • This includes finalizing the mine development agreement, advancing mining negotiations, initial engineering design and project financing prior to a final investment decision.
  • In addition, the funds will be used for the final payment of a rehabilitation bond payment to Paladin Energy, as well as general maintenance and business costs.
  • The company will issue approximately 104.2 million new shares at 24 cents each, representing a 9.1% discount to the five-day volume-weighted average price.
  • The shares are trading down 17.8% today at 24.3 cents each at 12:41 a.m. AEST

Lotus Resources (LOT) has raised $25 million through a placement to fund the development of its Kayelekera project in Malawi.

This includes finalizing the mine development agreement, advancing extraction negotiations, initial engineering design (FEED) and project financing prior to a final investment decision.

In addition, the funds will be used for the final disbursement of a rehabilitation bond payment to Paladin Energy (PDN), as well as general maintenance and business expenses.

The company will issue approximately 104.2 million new shares at 24 cents each, representing a 9.1% discount to the five-day volume-weighted average price.

Upon completion, Lotus will have approximately $28 million in unrestricted cash.

Chief executive Keith Bowes said the request received in the placement validates his restart strategy.

“We are very pleased to have received such support for the placement which will allow us to advance removal negotiations with the various utilities and project funding during a period of significant support for nuclear power around the world. “, did he declare.

The shares were trading down 17.8% today at 24.3 cents each at 12:41 a.m. AEST.