Zero carbon lithium/ geothermal company Vulcan Energy Resources raises USD 92m for German projects

Zero carbon lithium/ geothermal company Vulcan Energy Resources raises USD 92m for German projects Drawings of planned geothermal-lithium production plant (source: Vulcan Energy Resources)
Alexander Richter 9 Feb 2021

Australian-listed Vulcan Energy Resources has secured commitments of funding of around AU$ 120 million with proceeds to support development of lithium/ geothermal projects in the Upper Rhine Valley in Germany.

Announced last week, Australian-stock market listed Vulcan Energy Resources (VUL) announced having received firm commitments to raise AU$120 million (around USD 92 million) via a placement for its Zero Carbon Lithium Project. The funding raised by the placement is to finance the investments of Vulcan in its zero carbon lithium project in the Upper Rhine Valley of Germany.

The company plans to conduct a feasibility study by mid-2022, acquire exploration data and start the required permitting process, drill site acquisition and additional project development work.

The commitments secured come from sophisticated, professional and institutional investors, were strongly supported by international and domestic ESG-focused institutions, with the cornerstone investment provided by Gina Rinehart’s Hancock Prospecting.

Significant investment was also provided by the BNP Energy Transition Fund. Goldman Sachs and Canaccord Genuity acted as joint lead managers.

“We received overwhelming support for the placement from both domestic and international ESG-focused institutional investors. This demonstrates clear support for our strategic plan to develop the world’s first Zero Carbon Lithium project,” said Managing Director, Dr Francis Wedin.

“Proceeds from the placement provide us with a runway to final investment decision and enables Vulcan to accelerate project development, including targeted delivery of a definitive feasibility study (DFS) by Q2 2022”.

Source: The Market Herald