Vulcan Energy Resources has secured a total of €40m ($43m) through private placement to support the construction work for its phase one integrated Zero Carbon Lithium Project in Germany.
Under the terms of the private placement, Vulcan issued ten million shares to CIMIC Group for €25m, five million shares to Hancock Prospecting for €12.5m and one million shares to Victor Smorgon Group for €2.5m.
The new shares, priced at €2.50 each, were offered at a 9% discount to Vulcan’s 30-day volume-weighted average price and will rank equally with existing ordinary shares.
The strategic investments are crucial for the funding of pre-execution activities during the final stage of project financing and for maintaining the deterministic execution schedule of the project.
CIMIC’s €25m investment will establish the company as a substantial shareholder in Vulcan, holding a 6% stake in the outstanding share capital.
Australian billionaire Gina Rinehart-owned Hancock Prospecting has been a significant shareholder in Vulcan since January 2021.
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By GlobalData
With this new investment, Hancock Prospecting has increased its stake to 7.5%, becoming Vulcan’s second-largest shareholder.
The raised funds will facilitate early validation works for the engineering procurement and construction management (EPCM) contract for Vulcan’s phase one lithium plant.
Additionally, the investment will support activities including engineering and the pre-ordering of long-lead items.
EPCM validation will be conducted by CIMIC’s subsidiary Sedgman and HOCHTIEF.
Vulcan managing director and CEO Cris Moreno said: “Today’s investments into Vulcan by CIMIC Group and Hancock Prospecting come at a particularly exciting time for Vulcan as we make significant headway towards developing phase one of our flagship integrated renewable energy and Zero Carbon LithiumTM Project.
“The substantial investments by both parties will enable the early commencement of important validation works ahead of the formal EPCM contract, maintaining momentum on the project timeline and optimising the overall execution programme as we move towards final funding and construction.
“We warmly welcome CIMIC Group in becoming a substantial shareholder and are excited about the increased investment by our long-term shareholder Hancock Prospecting. Both parties have demonstrated experience in the delivery of globally significant, major projects and are eminently complementary to Vulcan’s strategy of producing Europe’s first sustainable battery-grade lithium products.”
