- Vulcan Energy (VUL) is looking to raise $100 million to progress the development of its Zero Carbon Lithium Project in western Germany
- The company intends to issue 15.4 million new fully paid ordinary shares at a price of $6.50 each
- This represents a 17.1 per cent discount compared to the company’s closing price yesterday of $7.84 per share
- $50 million will be used for development and permitting, $30 million will be used for drill site acquisition and preparation, and $20 million will go towards strategic opportunities to accelerate project development
- Shares in Vulcan Energy are currently in a trading halt, which is expected to remain in place until Thursday, February 4
Vulcan Energy (VUL) is looking to raise $100 million to progress the development of its Zero Carbon Lithium Project in western Germany.
The lithium company intends to issue 15.4 million new fully paid ordinary shares at a price of $6.50 each. This represents a 17.1 per cent discount compared to the company’s closing price yesterday of $7.84 per share and a 14.7 per cent discount compared to its 30-day volume weighted average price of $7.62 per share.
According to an equity raising presentation published today, $50 million will be used for project development, permitting, feasibility study costs and overheads. This includes various test work activities and a significantly increased headcount in Germany to accelerate on-the-ground development.
$30 million will go towards drill site acquisition and preparation, including land access costs and the purchase of long-lead drilling items, while $20 million will support strategic opportunities to ramp-up project development, such as the acquisition of existing infrastructure.
The non-underwritten financing will be completed in a single tranche, and the company’s Chairman, Gavin Rezos, is expected to participate with a $250,000 subscription, which will be subject to shareholder approval at an extraordinary general meeting in March.
Located in Germany’s Upper Rhine Valley, the project aims to decarbonise the carbon production footprint of lithium-ion batteries used in electric vehicles.
An initial phase, scheduled to begin in 2024, requires €226 million (roughly A$357 million) to build two geothermal energy plants and €474 million (roughly A$748.82 million) for lithium extraction and processing plants.
The financing is expected to settle on Wednesday, February 10, with the allotment and quotation of the new shares scheduled to take place the following day.
Shares in Vulcan Energy are currently in a trading halt, which is expected to remain in place until Thursday, February 4.