Vulcan Energy Resources has received commitments of around USD 3.4 million in equity for work on its pilot project to derive lithium from geothermal brine at a geothermal power project in Germany.
In a release this morning, ASX-listed Vulcan Energy Resources announces it is has received firm commitments to raise gross equity proceeds of AU$4.8m (before costs) or around USD 3.4 million through the issue of 12,000,000 fully paid ordinary shares at an issue price of 40 cents per share.
The Placement was significantly oversubscribed and strongly supported by ESG-focussed sophisticated investors, as well as new institutional and sophisticated investors based in Australia and Europe.
The funds raised from the Placement will be used to accelerate the advancement of the Company’s Zero Carbon LithiumTM Project, in particular:
- Completion of a PFS at the Project, including engineering studies and bench-scale lithium extraction testwork.
- Engineering, construction and operation of a pilot plant.
- Purchase of seismic data to fast-track siting and development of geothermal
The Placement price represents a nil discount to the 15-day Volume Weighted Average Price (“VWAP”), and an 8% premium to the 30-day VWAP up to and including 19 June 2020. Merchant Group and Viaticus Capital were Joint Lead Managers to the Placement.
Vulcan Managing Director, Dr. Francis Wedin, commented: “We would like to welcome a number of new ESG-focussed and institutional investors, and to thank our existing shareholders for the support shown. We are excited to be joined by investors who share our commitment to decarbonising the battery raw materials supply chain as part of the global transition to electric vehicles (EVs).
The last few months have been transformational for the Zero Carbon LithiumTM Project, as we saw Europe’s leadership in EV and lithium-ion battery production growth really take off. The EU is now the fastest growing lithium battery production centre in the world and has an unparalleled commitment to making this supply chain carbon neutral. Vulcan is positioned right at the epicentre of this very rapid growth, with a globally peerless product, process, and project, to produce Zero Carbon LithiumTM hydroxide for EV batteries.
We have a highly active 6-12 months ahead as we accelerate our project development further, and look forward to keeping our shareholders, old and new, well informed of our progress.”
Source: company release