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Lotus Resources has successfully raised approximately A$65 million (US$42 million) through a share placement to institutional and sophisticated investors, aiming to strengthen its uranium portfolio in southern Africa.
The fresh capital will primarily support the company’s 85%-owned Kayelekera uranium project in Malawi and further development of its wholly-owned Letlhakane project in Botswana. Both sites are strategically positioned as Africa’s role in the global uranium supply chain becomes increasingly vital, driven by rising demand for low-carbon energy solutions.
The placement involved issuing around 342 million fully paid ordinary shares at A$0.19 each—representing a 15.6% discount to Lotus’s most recent closing price and a 1.6% discount to the ten-day volume-weighted average. An additional 1.2 million shares are expected to be issued to directors, pending shareholder approval.
Proceeds will enhance working capital at Kayelekera, which recently restarted operations on time and within budget, successfully producing its first batch of triuranium octoxide, commonly known as yellowcake. The funding will also strengthen Lotus’s balance sheet, providing flexibility for offtake negotiations, inventory building, and future capital allocation.
CEO Greg Bittar highlighted that strong support from both new and existing institutional investors reflects growing confidence in the company’s strategic direction. He noted that the enhanced financial position enables Lotus to navigate its path toward consistent production and respond to the favorable outlook in the uranium market.
The placement was jointly led by Barrenjoey Markets, Jett Capital Advisors, and Canaccord Genuity, with Argonaut Securities and Petra Capital as co-managers. Steinepreis Paganin provided legal counsel.
Kayelekera, located in northern Malawi, has been one of the country’s most significant mining assets, with potential to contribute meaningfully to local economic development. Letlhakane, in Botswana, is considered one of the world’s largest undeveloped uranium deposits, reflecting the country’s efforts to diversify its mining sector beyond diamonds.
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These developments come as African resource producers recalibrate their role in the global energy transition. While uranium continues to raise questions around environmental impact and waste management, its contribution to low-carbon energy strategies is gaining broader acceptance. Malawi and Botswana are navigating the intersection of developmental priorities, resource sovereignty, and shifting global market dynamics.
This latest capital raise signals growing international financial engagement with Africa’s uranium sector and positions Lotus to be a key player in a supply chain shaped by energy security, geopolitical tensions, and decarbonisation imperatives.