Vulcan builds strategic license holding in Upper Rhine Valley
2 minute read
Today, Vulcan Energy Resources Limited (ASX:VUL) announced that a binding agreement has been signed to acquire 100% of Global Geothermal Holding UG (GGH), further consolidating the company’s strategic license holdings in the Upper Rhine Valley.
GGH is Vulcan’s joint venture partner holding the granted Taro license in the Upper Rhine Valley.
The Taro license has a JORC Resource Estimation of 2.27 Mt contained Lithium Carbonate Equivalent (LCE) at a grade of 181 mg/l Li (Indicated and Inferred) out of the total 15.85 Mt LCE at 181 mg/l Li across the Vulcan Project.
Vulcan has earned a 51% interest in the Taro license and has a right to earn up to 80% with GGH holding the balance.
Additionally, GGH also holds other exploration license applications in the Upper Rhine Valley region which are subject to the Vulcan joint venture.
This acquisition consolidates Vulcan’s major strategic holding in the Upper Rhine Valley, as part of the plan to rapidly advance the Zero Carbon Lithium® project towards production.
Vulcan Managing Director, Dr. Francis Wedin, commented, “By acquiring 100% of GGH, we are consolidating ownership of the Taro and other exploration licences, which simplifies financing and development of our large strategic position in the Upper Rhine Valley.
"This consolidation is an important part of our strategy to become a major supplier of our unique Zero Carbon Lithium® hydroxide to the European battery electric vehicle market."
Terms of the agreement
In November 2020, Vulcan announced a JORC Resource Estimation of 2.27 Mt contained Lithium Carbonate Equivalent (LCE) at a grade of 181 mg/l Li (Indicated and Inferred) in the Taro license.
The Taro Resource was then integrated into Vulcan’s positive Pre- Feasibility Study (PFS) as the first planned phase of project development.
Acquiring 100% of GGH will simplify and consolidate Vulcan’s holding, as part of its strategy to advance its Zero Carbon Lithium® project towards production.
The agreement involves entirely share-based payments, 90% of which are based on project development milestones.
Latest articles on Vulcan Energy Resources
More Commentary
Los Cerros confirms extensive gold porphyry mineralisation
08-07-2021
GTI completes drilling ahead of establishing uranium resource
06-07-2021
Los Cerros ready to grow another leg, driven by Tesorito results
28-06-2021
GTI Resources starts second round of uranium exploration drilling
25-06-2021S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
Publishers Notice
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.