Gina Rinehart-backed lithium explorer Vulcan Energy Resources is seeking $200 million ahead of its entry into the ASX300 index later this week.
Vulcan, which is aiming to produce the world’s first premium, zero-carbon lithium hydroxide product by 2024, will use the proceeds to ensure timely project execution, upgrades of existing brownfield energy and brine infrastructure and expand project development initiatives.
Approximately 14.8 million shares will be issued through the placement at $13.50 each.
Following the completion of that placement, Vulcan will also undertake a share purchase plan to raise a further $20 million at the same issue price.
Today’s announcement follows news that Mrs Rinehart had invested in the company as part of a $120 million placement conducted earlier this year.
Managing director Francis Wedin said at the time that her investment, in addition to backing from BNP Paribas’ Energy Transition Fund, demonstrated clear support for the company’s strategic plan.
Lithium explorers have garnered significant interest in recent months, in part due to a recovery in the commodity’s price since 2019, with Pidemont Lithium, Core Lithium and Global Lithium Resources among WA-based businesses to receive investor attention.
Vulcan Energy Resources suspended trading this morning after shares closed at $15.90 each yesterday afternoon.