Perth billionaire enters the green energy minerals arena.
Australia’s wealthiest person, Gina Rinehart, has announced a major cornerstone investment in Perth based lithium exploration company Vulcan Resources.
Rinehart’s Hancock Prospecting Limited will help bankroll the Vulcan lithium project in Germany.
Rinehart is entering a capital raise that will help the Perth based company develop its multi-billion dollar lithium play.
“HPPL (Hancock Prospecting) is pleased to have increased our shareholding further as a result of the placement and that Vulcan will be progressing its definitive feasibility study with funding for this now secured,” it said in a statement.
“We look forward to continuing our relationship with Vulcan.”
Vulcan Energy Resources (VUL) announced a placement of 18,461,538 new fully paid ordinary shares issued at $6.50 per share to help them develop their asset in Europe.
“We received overwhelming support for the placement from both domestic and international ESG-focused institutional investors. This demonstrates clear support for our strategic plan to develop the world’s first Zero Carbon Lithium project,” said Managing Director, Dr Francis Wedin said.
“Proceeds from the placement provide us with a runway to final investment decision and enables Vulcan to accelerate project development, including targeted delivery of a definitive feasibility study (DFS) by Q2 2022”.
The project is promising to deliver 100% green extraction of lithium and delivery to the booming German EV car making industry.
The company’s pre-feasibilty study values the lithium resources it owns near Offenburg at 2.8 billion euros or US$3.4 Billion.
Demand for lithium is set to explode in the years ahead, as car makers move to EV tech.
EU nations, the UK and the US government are moving to encourage the movement of EVs and away from internal combustion engines.
Most lithium resources are located in South America and Australia.
The location of the lithium deposit and it’s promise to deliver a carbon free operation has helped boost the share price of VUL by more that 14-fold since 2020.
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