Lotus Resources has completed a placement to raise approximately A$65m ($42m) to bolster working capital for its 85%-owned Kayelekera uranium project in Malawi and progress the development of the 100%-owned Letlhakane project in Botswana.

The company has received firm commitments from institutional and sophisticated investors for the issuance of around 342 million new fully paid ordinary shares at A$0.19 per share, plus approximately 1.2 million new shares issued to directors pending shareholder approval.

The offer price reflects a 15.6% discount on the last closing share price and a 1.6% discount on the ten-day volume-weighted average price.

The funds raised will provide additional working capital for the Kayelekera project, which has restarted production on schedule and within budget.

They will also strengthen Lotus' balance sheet, allowing for flexibility in its offtake strategy, inventory accumulation and capital optimisation.

Furthermore, the proceeds will enable Lotus to continue progressing the large-scale Letlhakane project to become a global uranium producer.

Lotus CEO Greg Bittar said: “The strong participation of existing and new institutional shareholders provides Lotus with greater working capital and balance sheet flexibility as we move through to steady state production and build uranium inventory.

“This provides further runway for us to capture upside from the increasingly bullish uranium market outlook.”

Barrenjoey Markets, Jett Capital Advisors and Canaccord Genuity are acting as joint lead managers, with Argonaut Securities and Petra Capital as co-managers.

Steinepreis Paganin is serving as Lotus’ Australian legal adviser.

Earlier this month, Lotus Resources produced the first batch of triuranium octoxide, commonly known as yellowcake, from the Kayelekera uranium mine.