Australia-listed Vulcan Energy Resources said on Wednesday that it had secured a financing package of 2.2 billion euros ($2.56 billion) to fully fund the first phase of its Lionheart lithium and renewable energy project in Germany.
The financing package, backed by stakeholders including European and German government agencies and commercial banks, has enabled the Vulcan board to take a final investment decision on the project, with execution to commence in the coming days, the company said.
Start-up Vulcan will raise up to 603 million euros in equity at a fixed price of 2.24 euros per new share as part of the financing package.
The equity raising will include a placement worth 137 million euros, a 261-million-euros fully underwritten 1 for 1.128 accelerated non-renounceable into entitlement offer, and a 130 million euros 1 for 1.128 non-accelerated retail offer.
The lithium explorer in July received 104 million euros in German government grants to produce clean lithium, as Berlin aims to boost electric vehicle output and reduce reliance on raw material imports.
($1 = 0.8604 euros)
(By Sherin Sunny; Editing by Krishna Chandra Eluri)