- Vulcan Energy Resources (VUL) has signed a binding agreement to acquire 100 per cent of Global Geothermal (GGH)
- GGH is Vulcan’s minority joint venture partner in the granted Taro licence in the Upper Rhine Valley
- Vulcan’s acquisition will consolidate its holding in the Upper Rhine Valley and help advance the Zero Carbon Lithium Project towards production
- The company will complete the acquisition entirely through share-based payments, with most based on project development milestones
- Vulcan Energy Resources closed 3.12 per cent higher at $7.60 per share
Vulcan Energy Resources (VUL) has signed a binding agreement to acquire 100 per cent of Global Geothermal Holding UG (GGH).
GGH is the company’s minority joint venture partner in holding the granted Taro license in Germany’s Upper Rhine Valley. Vulcan’s geothermal and lithium resource in the Upper Rhine Valley is currently the largest lithium resource in Europe.
Vulcan has earned a 51 interest in the Taro licence but has the right to earn up to 80 per cent interest, with GGH holding the remaining balance. In addition to the Taro license, GGH holds other exploration licence applications within the Upper Rhine Valley region, which are subject to its joint venture with Vulcan.
Vulcan’s acquisition of GGH will consolidate its major strategic holding in the Upper Rhine Valley. This forms part of the company’s plan to quickly advance its Zero Carbon Lithium Project towards production.
According to the agreement, Vulcan will complete the acquisition entirely through share-based payments. Ninety per cent of those payments will be based on project development milestones.
Vulcan’s Managing Director, Dr Francis Wedin, commented on the company’s planned acquisition of GGH, and what it will achieve.
“By acquiring 100 per cent of GGH, we are consolidating ownership of the Taro and other exploration licenses, which simplifies financing and development of our large strategic position in the Upper Rhine Valley,” he said.
“This consolidation is an important part of our strategy to become a major supplier of our unique Zero Carbon Lithium hydroxide to the European battery electric vehicle market,” he added.
Vulcan Energy Resources closed 3.12 per cent higher at $7.60 per share at 4:10 pm AEDT.