Highlights

  • Lotus Resources has launched an institutional placement targeting approximately AUD 76 million.
  • Proceeds are earmarked to support uranium production ramp-up and working capital requirements.
  • A separate share purchase plan seeks to raise up to AUD 5 million from eligible shareholders.

Lotus Resources Limited (ASX:LOT) has announced a non-underwritten equity placement aiming to raise approximately AUD 76 million (USD 53 million) before costs. The placement is priced at AUD 2.15 per share and involves the issue of around 35.4 million new fully paid ordinary shares to institutional and sophisticated investors. The capital raise is intended to provide additional working capital during the ramp-up phase at the Kayelekera uranium project as the company progresses toward steady-state production.

In addition to the placement, the company plans to undertake a non-underwritten share purchase plan (SPP) targeting up to AUD 5 million (USD 3 million). Eligible shareholders in Australia and New Zealand will be able to apply for up to AUD 30,000 worth of shares at the same offer price, subject to regulatory approvals.

Balance Sheet Position and Use of Funds
Following completion of the placement and SPP, Lotus expects pro-forma unaudited cash of approximately AUD 145 million. This figure includes cash on hand as of 31 December 2025, equipment finance drawn after the quarter end, and gross proceeds from the equity raising.

The funds are intended to support completion of the acid plant and grid connection projects, which are expected to influence operating cost structures. The cash balance is also designed to cover the typical uranium working capital cycle of approximately five to six months. The company has noted that inventory pre-payment facilities are under negotiation and could provide additional liquidity if required.

Operational Timeline and Production Outlook
Lotus is targeting monthly nameplate production of around 200 thousand pounds of uranium, equivalent to approximately 2.4 million pounds per annum, during the second quarter of calendar year 2026. Product qualification assessments are ongoing, with one western converter confirming that initial samples meet required specifications for key parameters. Final product acceptance is anticipated during February 2026.

The first shipment of uranium product is expected in Q2 CY2026, subject to qualification, testing, final preparation, and permitting. Initial cash receipts are targeted for Q3 CY2026.

Placement Structure and Timetable
The placement is being conducted under the company’s existing ASX Listing Rule 7.1 capacity and is not underwritten. New shares issued will rank equally with existing ordinary shares. Settlement is scheduled for 6 February 2026, with allotment expected on 11 February 2026. The SPP is expected to open on 12 February 2026, with shares to be issued in March, subject to final conditions.

Share Performance
Lotus Resources traded at AUD 2.88 on 4 February 2026.

With funding initiatives underway, Lotus Resources is moving through a capital-intensive phase as it advances Kayelekera toward steady-state uranium production, while maintaining liquidity to manage operational and working capital requirements during the transition period.

FAQs

Q1. How much capital is Lotus Resources seeking to raise through the placement?
The company is targeting approximately AUD 76 million before costs through a non-underwritten placement.

Q2. What is the purpose of the share purchase plan?
The SPP is intended to raise up to AUD 5 million and allows eligible shareholders to participate at the placement price.

Q3. When is Lotus expecting its first uranium shipment?
The first shipment is expected in Q2 CY2026, subject to product qualification and regulatory approvals.