Vulcan’s SPP Nets 1.37 Million Shares at A$5.85, Adding A$8 Million Capital
Vulcan Energy has successfully closed its Share Purchase Plan, raising approximately A$8 million through the issuance of over 1.3 million new shares, following a major institutional placement. This capital injection supports the company’s pioneering lithium and renewable energy projects in Europe.
- Share Purchase Plan closed on 20 January 2025
- Raised ~A$8 million via issuance of 1,366,332 new shares
- Followed a A$164 million institutional placement at same share price
- New shares to be issued on 28 January and trade from 29 January 2025
- Funds support Vulcan’s carbon-neutral lithium and renewable energy projects
Share Purchase Plan Completion
Vulcan Energy Resources (ASX: VUL) announced the successful closure of its Share Purchase Plan (SPP) on 20 January 2025, raising approximately A$8 million. The SPP saw the issue of 1,366,332 new fully paid ordinary shares at A$5.85 each, the same price as the recent institutional and strategic placement completed in December 2024.
This additional capital follows a significant A$164 million raise from institutional investors, underscoring strong market confidence in Vulcan’s vision and projects. The new shares from the SPP are scheduled for issuance on 28 January 2025 and are expected to commence trading on the ASX the following day, 29 January.
Backing a Carbon-Neutral Lithium Future
Vulcan Energy is positioning itself at the forefront of sustainable lithium production, aiming to deliver Europe’s first carbon-neutral lithium supply chain. Its flagship Lionheart Project, located in the Upper Rhine Valley spanning Germany and France, boasts the largest lithium resource in Europe and ranks as a tier-one global lithium asset.
The company’s innovative approach harnesses geothermal energy to extract lithium from subsurface brines, significantly reducing the carbon footprint compared to traditional mining methods. The funds raised through the SPP and prior placement will help accelerate development and commercialisation of this integrated lithium and renewable energy business.
Market and Strategic Implications
The successful capital raising rounds reflect strong shareholder and investor support for Vulcan’s strategy amid growing demand for sustainable battery materials driven by the electric vehicle revolution. By securing additional funding through the SPP, Vulcan enhances its financial flexibility to advance project milestones and technology deployment, including its proprietary VULSORBO lithium extraction technology.
As the company prepares to issue and list the new shares, market participants will be watching closely to gauge investor appetite and the impact on Vulcan’s share liquidity and valuation. The capital injection also positions Vulcan to potentially expand its footprint or accelerate timelines in a competitive lithium market increasingly focused on ESG credentials.
Looking Ahead
With the SPP now closed and funds secured, Vulcan Energy is set to continue its journey toward delivering a sustainable lithium supply chain for Europe’s burgeoning battery sector. The company’s ability to execute on its development plans and navigate market dynamics will be critical in the coming months as it moves closer to production.
Bottom Line?
Vulcan’s successful capital raise strengthens its position in Europe’s green lithium race, but execution risks remain ahead.
Questions in the middle?
- How will the new capital specifically accelerate Vulcan’s project development timelines?
- What impact will the increased share count have on Vulcan’s stock liquidity and valuation?
- Can Vulcan maintain its carbon-neutral promise while scaling lithium production?
