Lotus Resources [ASX:LOT] down 18% on a $25 million investment
Uranium stocks Lotus Resources [ASX:LOT] made a $25 million investment to advance its Kayelekera uranium project in Malawi.
The placement was at 24 cents per share, with the last LOT closing price around 30 cents per share.
Friday’s drop means the uranium stock is currently trading at roughly the reduced placement issue price.
Year-to-date, LOT shares are down 20%.
Lotus completes its institutional placement
On Friday, Lotus Resources announced that it has now completed its $25 million placement, launched with the intention of accelerating progress on its 85%-owned Kayelekera uranium project in Malawi.
The placement – which has not been secured – will include the issuance of approximately 104.2 million new fully paid common shares at 24 cents per share.
Lotus said it was pleased with the acceptance of the offer by “specialized uranium investors”:
‘The Company is particularly pleased to welcome a number of specialist uranium investors to the register, which is a strong endorsement of the resumption of uranium production on the Project, as set out in the feasibility study. final publication recently published by the Company..’
The new capital will finance the development of its Kayelekera project.
This includes finalizing a Mine Development Agreement (MDA), continuing removal negotiations, processing FEED (Front End Engineering and Design) and an FID (Final Investment Decision).
What is the outlook for LOT shares in the context of the energy crisis?
Lotus Managing Director Keith Bowes shared his thoughts on the placement:
‘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 energy on a global scale. world.
‘In particular, the demand received from global industry specialists when the book was put together provides significant validation of the company’s restart strategy and underscores the project’s value as one of the world’s closest forward producers. .
‘I would also like to thank our existing shareholders for their strong and continued support, and welcome all of our new shareholders. We look forward to providing further updates on our activities in the weeks and months to come.‘
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