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%.

Source: www.tradingview.com

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.

While oil prices have fallen recently, other key energy inputs like gas remain high.

Russia’s invasion of Ukraine, which is undermining fossil fuel supplies, even as the world seeks to phase out fossil fuels in its pursuit of decarbonization, has once again put nuclear in the spotlight. .

Nuclear is again beginning to look like a powerful alternative to Russia’s contaminated oil and gas.

And uranium stocks react.

But there is a small stockpile of Australian uranium that few talk about.

This little-known uranium miner could help solve Europe’s energy crisis.

Ryan Clarkson-Ledward, our small cap expert, described this potential savior in a recent research report.

You can read it, for free, here.


Kiryll Prakapenka

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