- Vulcan Energy Resources (VUL) intends to spin off its Scandinavian non-lithium battery metals projects into a new company
- The resulting entity, Kuniko, will seek an ASX listing through an IPO, which Vulcan shareholders will be able to participate in
- The proposed spin-out will allow Vulcan Energy to fully focus on developing its core Zero Carbon Lithium project in Germany
- Kuniko will focus on developing copper, nickel, and cobalt projects in Scandinavia for the European battery metals market
- Vulcan Energy Resources is down 3.22 per cent and trading at $7.21 per share
Vulcan Energy Resources (VUL) intends to spin off its Scandinavian non-lithium battery metals projects into a new company.
The company has a number of such assets in Scandinavia, which would be spun off into a new entity called Kuniko Limited. These assets include the Feøy, Romsås, Skuterud, Undal and Vangrøfta projects, all of which are located in Norway.
The Feøy Project is prospective for nickel, cobalt and copper, while both Skuterud and Vangrøfta are prospective for cobalt, copper and gold. The Undal Project is prospective for copper, cobalt and zinc, and the Romsås Project is prospective for nickel, chrome, copper and platinum group elements (PGEs).
With these assets in hand, Kuniko will seek an ASX listing under the proposed code KNI, through an initial public offering (IPO).
Shareholders in Vulcan Energy will benefit from a one-for-four priority offer to participate in a 20-cent raise to fund Kuniko. The shareholders will also have priority rights to apply for additional shares above their entitlement.
Vulcan will retain a minority holding of about 27 per cent in Kuniko after the IPO.
The proposed spin-out will allow Vulcan to fully focus on developing its core Zero Carbon Lithium Project in Germany.
The spin-out will also allow Kuniko to focus on developing its projects in Norway, whilst maintaining a net zero carbon footprint throughout its exploration, development and production.
The new entity has already begun a detailed review and assessment of each licence area, with a view to developing low-carbon footprint battery metal exploration discoveries.
Over the coming European summer months, Kuniko will conduct field reconnaissance studies to create detailed exploration plans for each project. The company will also conduct thorough sampling and mapping over each area to construct tailored geophysical surveys and, ultimately, drill targets that are identified during this process.
Vulcan Energy Resources is down 3.22 per cent, trading at $7.21 per share at 10:26 am AEST.