22/12/2021 - 12:26

Rinehart trims Vulcan holding

22/12/2021 - 12:26

Bookmark

Save articles for future reference.

Gina Rinehart sold off about $10.2 million worth of shares in lithium aspirant Vulcan Energy Resources as it fought to keep a damaging short selling report out of publication, an ASX notice has revealed.

Rinehart trims Vulcan holding
Gina Rinehart is a major shareholder in Vulcan Energy Resources. Photo: Gabriel Oliveira

Gina Rinehart sold off about $10.2 million worth of shares in lithium aspirant Vulcan Energy Resources as it fought to keep a damaging short selling report out of publication, an ASX notice has revealed.  

The change of substantial holder interest notice published to the market late on Tuesday revealed HPPL Group had sold 930,000 shares cumulatively over three days in November.

Vulcan Energy Resources is working to produce what it says could be a world-first zero carbon lithium hydroxide product from its in-development geothermal lithium brine project in the Upper Rhine Valley.

The company piqued the interest of the magnate earlier this year when she took part in a $120 million share placement, when securities were on offer at $6.50 apiece.

But Vulcan’s aspirations were recently called into question by a critical short-selling report titled ‘Vulcan: God of Empty Promises' published in late October.

It triggered a drop in Vulcan’s share price, which fell from around 14.9 cents to 10.8 cents in the days following.

The recent sell-down coincided with Vulcan’s successful attempt to have the report temporarily removed from publication.

The parties have since settled out of court, resulting with J Capital and report author Timothy Murray being permanently restrained from publishing any matter of and concerning Vulcan.

Overall, Mrs Rinehart’s investment in the lithium aspirant is in the black and she remains a substantial shareholder in Vulcan with a 5.64 per cent stake in the business.

The sales over November 8,9 and 10 were executed between $11.07 per share and $10.88 per share, still well above the initial purchase price.

Vulcan has continued business as usual since the legal stoush, securing offtake agreements with Volkswagen and Renault earlier this month.

The deals are both subject to the successful start of commercial operations however.

Vulcan Energy Resources shares are down 1.76 per cent to trade at $10.60.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options