Lotus Resources, an Australian mining company, has secured firm commitments for a non-underwritten two-tranche placement aimed at raising A$130m ($87m) at A$0.25 per share to facilitate the expedited restart of its Kayelekera uranium project in Malawi.

Lotus witnessed significant demand for the placement from existing shareholders as well as new institutional investors from both domestic and international markets.

Due to the high demand, Lotus has opted to expand the placement to A$130m, up from the A$110m originally announced on 22 October 2024.

The placement will involve the issuance of approximately 520 million new shares at A$0.25 each, divided into two tranches.

The first tranche will issue around 267.6 million new shares to raise approximately A$66.9m, with an expected issue date of 29 October. This tranche does not require shareholder approval.

The second tranche, contingent on shareholder approval, will see approximately 252.4 million new shares issued to raise around A$63.1m.

The funds from this placement, along with additional funds from a share purchase plan (SPP), will be allocated for capital investment and working capital for the Kayelekera project by the third quarter of 2025.

Lotus CEO Greg Bittar said: “This is a terrific outcome for Lotus and we are grateful for the support of our existing shareholders and the very strong interest and participation from new shareholders, including many international investors.

“The SPP provides existing investors the opportunity to participate on the same terms as the institutional and sophisticated investors. We look forward to advancing Kayelekera and delivering on our vision of becoming the next global uranium producer in 2025.”

Last month, Lotus signed financing and offtake agreements to advance the Kayelekera uranium project.