Vulcan Energy secures $3.9b financing package for Lionheart Project
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The news: Vulcan Energy has secured a EUR2.2 billion ($3.9 million) financing packaging, including the proceeds from a $943 million underwritten equity raise, which has allowed the company to proceed with a positive final investment decision (FID) on its Phase One Lionheart Project.
The numbers: Vulcan is undertaking a EUR75 million non-underwritten retail entitlement offer. Both equity raise components are at a fixed price of EUR2.24 or $4 per share.
In addition to the underwritten component of the equity raise, the financing EUR2.2 billion package includes EUR1.185 billion in senior debt funding from a 13 financier syndicate consisting of European Investment Bank, seven commercial banks and five export credit agencies including Export Finance Australia.
The rest of the funding consists of EUR204 million in German government grants, EUR150 million in equity investment in Vulcan’s primary German holding subsidiary by the KfW Raw Materials Fund to acquire a 14% share and a EUR133 million consortium of HOCHTIEF, Siemens Financial Services and Demeter to acquire a 15% interest in the Phase One Lionheart project entity.
The context: The Lionheart Project involves the construction of an integrated lithium and renewable energy project targeting production capacity of 24,000 tonnes of lithium hydroxide monohydrate, which is sufficient for 500,000 electric vehicle batteries per annum.
Over a 30-year project life, it will also co-produce 275 gigawatt hours of renewable energy and 560 gigawatt hours of heat per annum.
The stock entered a trading halt ahead of an announcement on the final outcome of its equity raise.
What they said: “Securing this financing package and taking a positive FID is a significant achievement in the history of Vulcan Energy,” Vulcan Energy managing director and CEO Cris Moreno said.
“It will allow the Company to transition from development phase into execution phase with the construction of the commercial scale supply chain for Lionheart.”
