Vulcan Energy launches $184m raise for Lionheart project
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The news: Vulcan Energy has launched a $184 million capital raise to fund the first phase of its Lionheart integrated lithium and renewable energy project in Germany.
The numbers: Vulcan will undertake an institutional placement and concurrent strategic placement to raise $164 million, plus a $20 million share purchase plan.
The placement will see the issue of 28 million new shares at $5.85 per share, representing an 11.9% discount to the last traded price of $6.64, and an 8.4% discount to the 30-day volume weighted average price of $6.39. The share purchase plan will be set at the same offer price as the placement.
The context: Perth-based Vulcan said proceeds from the raise will enable it to commence execution of the project's field development plan, its engineering, procurement and construction (EPC) contracts, and other "critical path" execution capital and operating expenditure.
The new funding will also provide working capital for the company to finalise its full strategic equity and debt project financing package, it said.
Earlier this month, Vulcan received a €120 million ($198 million) commitment from Australia's export credit agency Export Finance Australia for the Lionheart project's debt financing process.
What they said: "The funding will support Vulcan's aim of becoming the world's first integrated lithium and renewable energy producer with carbon neutral footprint," the company said.
The source: ASX announcement
