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- Vulcan Energy Resources (VUL) has received firm commitments to raise $120 million via an institutional placement to accelerate the development of its Zero Carbon Lithium Project in Germany
- The placement will see over 18 million new fully paid ordinary shares issued at $6.50 per share
- Proceeds will go towards project development, permitting, feasibility study costs, drill site acquisition and opportunities to accelerate project development
- The cornerstone investment has been provided by Gina Rinehart’s Hancock Prospecting, with significant investments also provided by the BNP Energy Transition Fund
- Vulcan Energy Resources is up 5.87 per cent, trading at $8.30
Vulcan Energy Resources (VUL) has received firm commitments to raise $120 million via a placement for its Zero Carbon Lithium Project.
The Perth-based company aims to be the world’s first Zero Carbon Lithium producer for electric vehicle batteries.
The placement provides funding to Vulcan to support final investments at its Zero Carbon Lithium Project in the Upper Rhine Valley of Germany.
Proceeds will go towards a feasibility study due mid-2022, looking into the acquisition of exploration data and the permitting of the Zero Carbon Lithium Project, plus drill site acquisition and preparation and strategic opportunities to accelerate project development.
The placement will see 18,461,538 new fully paid ordinary shares issued at $6.50 per share.
This price represents at 17.1 per cent discount to the last closing price of $7.84 on February 1, 2021, and a 17.8 per cent discount to the five-day volume-weighted average price of $7.90, as of the same date.
The commitments, from sophisticated, professional and institutional investors, were strongly supported by international and domestic ESG-focused institutions, with the cornerstone investment provided by Gina Rinehart’s Hancock Prospecting.
Significant investment was also provided by the BNP Energy Transition Fund. Goldman Sachs and Canaccord Genuity acted as joint lead managers.
“We received overwhelming support for the placement from both domestic and international ESG-focused institutional investors. This demonstrates clear support for our strategic plan to develop the world’s first Zero Carbon Lithium project,” said Managing Director, Dr Francis Wedin.
“Proceeds from the placement provide us with a runway to final investment decision and enables Vulcan to accelerate project development, including targeted delivery of a definitive feasibility study (DFS) by Q2 2022”.
Chairman Gavin Rezos also intends to participate in the placement, subscribing $250,000 for 38.461 shares.
Vulcan Energy Resources is up 5.87 per cent, trading at $8.30 at 10:31 am AEDT.
