Vulcan Energy Resources to acquire German geothermal consultancy GeoThermal Engineering
Vulcan Energy Resources has acquired German sub-surface consultancy GeoThermal Engineering (GeoT).
Announced this week, Australian Stock Exchange-listed Vulcan Energy Resources (VUL) has announced having signed a binding agreement to acquire 100 per cent of geothermal sub-surface consultancy GeoThermal Engineering (GeoT).
GeoT has a world-leading scientific team based in the Upper Rhine Valley in Germany, with over a century of combined expertise in sub-surface development of geothermal projects, from exploration to production drilling.
GeoT has been working closely with the Vulcan team since the beginning of the Zero Carbon Lithium Project, making this an ideal acquisition for Vulcan, which plans to accelerate the project in Germany by rapidly growing its development team.
Vulcan entered into a binding term sheet with the sole shareholder of GeoT, Dr. Horst Kreuter, who is also the Executive Director of Vulcan. Due to Dr. Kreuter being heavily involved with both companies, he was excluded from the negotiation process on Vulcan’s side, with the transaction negotiated at arm’s length. It was agreed that Vulcan will acquire GeoThermal Engineering.
Before the deal can close, however, Vulcan will need to undertake a due diligence review to ensure the deal meets its sole discretion and satisfaction.
This acquisition did not require shareholder approval as Dr Kreuter was excluded from the negotiation process on Vulcan’s side and the terms of the acquisition are on arm’s length in terms of the consideration payable compared to the value of the assets being acquired.
Source: company release via Market Herald