Vulcan Energy, a lithium developer focused on Europe, announced today that it has received firm commitments for its A$200 million (~US$145 million) underwritten placement of new fully paid ordinary shares to sophisticated, professional and institutional investors at an offer price of A$13.50 per new share.
The company said that the placement was strongly supported by new and existing shareholders, including Hancock Prospecting and a number of global ESG-focused institutions. Settlement under the placement is expected to occur on Tuesday, 21 September 2021, Vulcan added.
According to the company's statement, proceeds from the placement and the share purchase plan, together with existing cash, will be applied to targeted acquisition and refurbishment of exploration equipment; targeted acquisition and upgrade of existing brownfield energy and brine infrastructure; expanded project development; and general working capital and costs of the offer.
Managing Director and CEO, Dr. Francis Wedin, said, "We are now well positioned to pursue the targeted acquisition and upgrade of existing brownfield energy and brine infrastructure, to de-risk and grow our development plans, as well as to increase our production pipeline from our existing license areas. This also allows us to complete the targeted acquisition and refurbishment of exploration equipment which will assist with executing on our project development in a timely manner."
Vulcan noted it is aiming to become the world's first lithium producer with net zero greenhouse gas emissions. Its Zero Carbon Lithium™ Project intends to produce a battery-quality lithium hydroxide chemical product from its combined geothermal energy and lithium resource, which is Europe's largest lithium resource, in Germany.