Vulcan launches $109m placement

Vulcan Energy Resources is looking to raise $109 million via a single tranche placement to fund its integrated energy and lithium project strategy.

The company today announced on the market that the placement proceeds would also be used to order long lead items for the first phase of its lithium plant and renewable energy plant.

Vulcan will offer 21.4 million new, fully paid ordinary shares at $A5.10 or €3.08 each.

The fixed Australian dollar price represented a 17.2 per cent discount to the last traded price on the ASX at $A6.16, the company said.

The Euro offer price of €3.08 per share represented an 18 per cent discount to the last traded price on the Frankfurt Stock Exchange.

"Fully underwritten €66 million ($A109 million) equity raising, together with existing cash of €112 million ($A182 million), will be used to progress Vulcan’s integrated renewable energy and lithium project execution strategy for ordering of commercial long-lead equipment, in line with the recently published DFS development plan," the company said on the ASX.

"[It] intended to provide sufficient capital to allow the company to arrange debt financing arrangements and strategic equity commitments."

Vulcan said its main focus was the Zero Carbon lithium project on the border of Germany and France, in the Upper Rhine Valley Brine Field.

The company aims to become the world's first integrated lithium chemicals and renewable energy producer with net zero greenhouse gas emissions, Vulcan said in its presentation.

Vulcan has offices in Perth and in Karlsruhe and Augsburg, Germany.