Vulcan Energy (ASX: VUL) Completes €100m Placement for Lionheart Project
Vulcan Energy (ASX: VUL) has successfully completed a fully underwritten institutional and strategic placement, raising €100 million (approximately A$164 million) to kickstart its Phase One Lionheart Project. The allocation involved the issuance of around 28 million new shares at A$5.85 each.
Use of Proceeds
The capital raised will be allocated towards critical activities for the Lionheart Project. Key expenditures include initiating the Field Development Plan, mobilising a rig for the first production well, and securing essential procurement contracts. Additionally, funds will support key contracts for constructing a geothermal renewable energy plant, alongside the Lithium Extraction and Central Lithium plants.
CEO Comments
Cris Moreno, Vulcan’s Managing Director and CEO, expressed gratitude towards shareholders, noting, “The Placement positions us to commence execution for Phase One Lionheart Project, advancing our strategy for a carbon neutral integrated lithium and renewable energy project.” He added that the project is well-placed to benefit from Europe’s transition to electric mobility.
Share Purchase Plan (SPP)
Following the placement, Vulcan Energy will offer eligible shareholders participation in a non-underwritten Share Purchase Plan (SPP), aiming to raise up to €12.2 million (A$20 million) at the same price per share. This will enable shareholders to invest additional capital without incurring brokerage fees. An SPP Booklet with further details is expected to be released shortly.
Project Economics Update
Vulcan also clarified its forecast financial information, advising investors to focus on the estimated project economics, which remain robust. Recent updates indicate an average annual revenue of €756 million and an EBITDA margin of 77%. The project economics have been validated with updated CAPEX and OPEX estimates reflecting current market environments.
Vulcan’s focus remains on developing sustainable lithium sources, leveraging its innovative technology for the European market. The settlement of the placement is scheduled for December 17, 2024, with trading in new shares to commence shortly thereafter.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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