ASX-listed uranium developer Lotus Resources is set to raise $30m (A$45.75m) through a strategic share placement to expedite the development of its uranium projects.

The placement involves issuing 100 million new shares at $0.30 apiece, marking a 6.5% discount to the last stock close of $0.32.

Paradice Investment Management is set to become a substantial shareholder, contributing $20m to the placement and securing a 5.5% interest in the company.

Canaccord Genuity (Australia) will serve as the lead manager for the placement, with BW Equities serving as the co-manager.

The settlement of the placement is expected on 28 February 2024, with the allotment of new shares scheduled for the following day.

The funds raised will be used to speed up the restart of Lotus’s Kayelekera mine in Malawi, taking advantage of the robust uranium market.

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The company also plans to advance works at its Letlhakane project in Botswana. These projects are expected to benefit from the current and forecasted strength of the uranium sector.

The proceeds will also enable Lotus to fast-track the front-end engineering and design (FEED) activities, secure long lead items and commence early works on-site.

Additionally, the funding will support the delivery of a scoping study for the Letlhakane project by financing infill drilling to optimise the mine plan and upgrade the mineral resource estimate.

Lotus Resources managing director Keith Bowes said: “We are pleased to secure $30m via this placement, allowing us to accelerate our activities around the restart at Kayelekera and development plans at Letlhakane.

“The placement has attracted significant interest from high-calibre strategic investors who share our bullish view on uranium market fundamentals, including Paradice, who will now become a substantial shareholder in the company.

“Our key priority remains progressing restart plans for Kayelekera to benefit from the increased demand for Kayelekera product and current strong and increasing uranium prices, but we also recognise that moving forward quickly with Letlhakane will enhance the company’s valuation.”

In July 2023, Lotus Resources entered a scheme implementation deed to merge with A-Cap Energy, to form an Africa-focused uranium powerhouse.