ASX-listed Lotus Resources has announced that it has successfully completed the institutional component of the fully underwritten one-for-one pro rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares in the company.

The company says it has secured about A$34.2-million in the institutional entitlement offer.

Lotus says the entitlement offer received strong support from existing eligible institutional shareholders, together with demand from a number of new high-quality Australian and international institutional investors.

Settlement of the institutional entitlement offer is expected to occur on July 31.

The company explains that the proceeds from the entitlement offer, together with the A$35-million senior unsecured convertible note (subject to shareholder approval and other conditions precedent), $30-million inventory-backed prepayment facility and existing cash, will derisk the continued ramp-up of the company’s Kayelekera uranium mine, in Malawi, and provide financial flexibility as Lotus transitions to steady-state production.

Lotus adds that it expects its voluntary suspension to be lifted and its shares to restart trading on the ASX on an ex-entitlement basis from market open July 27.

“We are very grateful for the support shown by our existing and new institutional shareholders at this challenging yet pivotal time for Lotus. These funds provide the balance sheet strength to see Kayelekera complete its production ramp-up and to see our way through to positive cash flow.

“Our focus now is on rebuilding value for all shareholders and we look forward to giving our retail shareholders the same opportunity to participate when the Retail Entitlement Offer opens on July 30,” says Lotus MD Greg Bittar.

A total of about 155.5-million new shares will be issued under the institutional entitlement offer, raising about A$34.2-million (before costs). New shares issued under the institutional entitlement offer will rank equally with existing Lotus shares.

The retail component of the entitlement offer is expected to raise up to a further A$26-million (before costs) through the issue of about 117.9-million new shares.

The retail entitlement offer will open on July 30 and close on August 13.