ESG investors provide strong support for VUL’s world first Zero Carbon Lithium™ Project
Vulcan Energy Resources Ltd (ASX:VUL) has completed a significantly oversubscribed Placement to institutional investors, raising $4.8 million to accelerate the advancement of the company’s Zero Carbon LithiumTM Project in Germany’s Upper Rhine Valley.
Vulcan intends to produce a world-first Zero Carbon LithiumTM hydroxide product at the project which hosts the largest lithium resource in Europe and is located in the heart of the EU.
The company has been on an exceptional run since its March lows, delivering shareholders a 200% gain as it eyes the completion of its pre-feasibility study and development of a pilot plant at its geothermal lithium brine project.
The oversubscribed Placement was strongly supported by Environmental, Social, Governance (ESG) focused sophisticated investors, including new institutional and sophisticated investors from both Australia and Europe.
The funds raised from will be used for the completion of a PFS at the Vulcan Zero Carbon LithiumTM Project, including engineering studies and bench-scale lithium extraction testwork.
The Placement funds will also support engineering, construction and operation of a pilot plant, plus the purchase of seismic data to fast-track siting and development of geothermal production wells.
Vulcan Managing Director, Dr Francis Wedin, commented, “We would like to welcome a number of new ESG-focused 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.”
Vulcan received firm commitments to raise gross equity proceeds of $4.8 million (before costs) through the issue of 12,000,000 fully paid ordinary shares at an issue price of 40 cents per share.
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.
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