Lotus Resources Secures Strategic Funding Package
Key points
- Fully underwritten A$60.1M equity raise to fund Kayelekera ramp-up
- A$35M convertible notes from CVI Investments
- US$30M inventory-backed prepayment with Mercuria
- Balance sheet reset to support steady state production
- Shareholders have opportunity to participate
Full summary
Lotus Resources Limited has announced a strategic funding package to support the continued ramp-up and optimization of its Kayelekera uranium mine. The package includes a fully underwritten A$60.1 million equity raise, A$35 million in senior unsecured convertible notes from CVI Investments, and a US$30 million inventory-backed prepayment facility with Mercuria. These funds will be used for capital projects, sustaining and other capital expenditures, cash settlements of near-term offtake contracts, and working capital. The equity raise offers shareholders an opportunity to participate, with a significant discount to recent trading prices. The convertible notes and prepayment facility provide additional financial flexibility and support the company's liquidity needs.
Guidance
A$60.1M equity raise, A$35M convertible notes, US$30M prepayment facility
Outlook
The strategic funding package is expected to support Lotus Resources' transition to steady-state production at Kayelekera by late CY2026.
Summary generated by a large language model. Please interpret with care.