Lotus Resources Ltd (ASX:LOT) has a capital raising announcement pending and has been granted a back-to-back trading halt by the ASX.
The securities will be halted until Friday, November 27, or when an announcement is released to the market, whichever occurs earliest.
Lotus, a uranium focused company, has a market cap of approximately $71.6 million and shares last traded at 9.6 cents, having reached 10 cents on November 18.
Potential to restart project
LOT recently completed a scoping study for the Kayelekera Uranium Project in Malawi, Africa, which demonstrated its capacity to be one of the first operations to globally restart uranium production to meet a growing supply shortfall.
Kayelekera’s existing infrastructure and mineral resources represent a considerable advantage, providing for a low restart capital expenditure and significant long-term production.
Lotus is working to identify and optimise opportunities to improve the operation and expand the resource base through targeted exploration activities to support an extension of the mine life.
To this end, several opportunities that could reduce operating costs, extend the life of mine or optimise production rates have been identified.