Lotus Resources Raises A$34.2 Million in Institutional Entitlement Offer

Strong Institutional Backing for Equity Raising

Lotus Resources Limited (ASX:LOT) has successfully closed the institutional portion of its fully underwritten 1-for-1 pro rata accelerated non-renounceable entitlement offer, raising approximately A$34.2 million. The offer attracted solid support from existing institutional shareholders alongside new Australian and international investors, reflecting confidence in the company’s strategy amidst a challenging production ramp-up phase at its Kayelekera uranium project.

The institutional shares will rank equally with existing stock, with settlement expected on 31 July 2026. This milestone enables Lotus to move forward with its planned financial and operational objectives, including lifting its voluntary ASX suspension and resuming share trading on an ex-entitlement basis from 27 July.

Retail Entitlement Offer to Open Soon

The retail component is scheduled to open on 30 July and aims to raise up to A$26 million through the issue of approximately 117.9 million new shares at A$0.22 each. Eligible retail shareholders in Australia and New Zealand will have the opportunity to participate on the same terms as institutions, including an oversubscription facility capped at 50% of their entitlement.

Notably, CVI Investments, managed by Heights Capital Management, has committed to sub-underwrite A$5 million of the retail offer, providing a degree of certainty to the raising’s success. Directors have also pledged to subscribe for their full entitlements and additional shares up to a combined A$400,000, signalling alignment with shareholder interests.

Funding Package Supports Kayelekera’s Transition

Proceeds from the entitlement offer will be combined with a proposed A$35 million senior unsecured convertible note (pending shareholder approval), a US$30 million inventory-backed prepayment facility, and existing cash reserves. This strategic funding package is designed to de-risk the ongoing ramp-up at Kayelekera and provide financial flexibility as the mine moves towards steady-state production.

Lotus has faced operational challenges at Kayelekera, including acid plant repairs and production delays, but the capital injection aims to stabilise operations and support positive cash flow generation. The company’s managing director, Greg Bittar, emphasised the importance of the funds in navigating this pivotal period and rebuilding shareholder value.

Key Dates and Next Steps

The retail entitlement offer will close on 13 August, with results announced the following day. Allotment of new shares under the retail offer is expected by 20 August. A general meeting to approve the convertible note and related offers is scheduled for 2 September, with allotments expected shortly thereafter.

As Lotus prepares to resume trading, investors will be watching closely how the retail offer performs and how effectively the company can execute its production ramp-up and financial strategy in the coming months.