PERTH (miningweekly.com) – Lithium developer Vulcan Energy Resources will raise A$200-million in an underwritten share placement to sophisticated, professional and institutional investors to support its goal of becoming the world’s first zero carbon lithium company.
The ASX-listed company will also undertake a share purchase plan (SPP), targeted at raising a further A$20-million.
The share placement will consist of some 14.8-million shares, at a price of A$13.50 each, representing a 15.1% discount to the company’s last closing price, and an 8.7% discount to its ten-day volume weighted average share price.
The new shares will be issued under Vulcan’s existing placement capacity, and will not require shareholder approval.
The company's SPP will offer existing shareholders the opportunity to subscribe for up to A$30 000 worth of new shares in the company, also at a price of A$13.50 each.
The SPP will open on September 24 and close on October 13.
Vulcan said on Tuesday that the proceeds from the offer, along with existing cash, would be used to accelerate exploration initiatives and expand the company’s dual renewable energy and lithium development strategy.
Funds would be used for targeted acquisition and refurbishment of exploration equipment, the targeted acquisition and upgrade of existing brownfield energy and brine infrastructure, expanding the scope of the current projects with the aim of increasing targeted production, and for general working capital.
A scoping study into Vulcan’s zero carbon lithium project demonstrated the potential for a combined operation producing lithium hydroxide and renewable energy, with a net zero carbon footprint.
The scoping study considered the staged development of a brine extraction, power generation, lithium direct extraction plant and brine reinjection that will be co-located.
Stage 1 of the production plant will consist of a direct extraction and lithium plant at an operating, producing geothermal well and power plant, while Stage 2 of the operation will consist of the drilling of ten new geothermal production wells, and the construction of a new, combined geothermal, direct lithium extraction and lithium hydroxide plant at Vulcan’s Ortenau licence.