ASX 300 lithium stock Vulcan Energy halted amid cap raise

Man with his hand out the front, symbolising a trading halt.Man with his hand out the front, symbolising a trading halt.

Vulcan Energy Resources Ltd (ASX: VUL) shares are going nowhere today after the company requested a trading halt and announced a capital raising.

The S&P/ASX 300 Index (ASX: XKO) lithium stock is frozen at yesterday’s closing price of $6.16.

Vulcan aims to become the world’s first lithium producer with a net zero carbon footprint, using no fossil fuels in its production.

It also aims to co-produce mass-scale renewable geothermal energy to contribute to Europe’s decarbonisation.

Let’s look at the details of the capital raising.

ASX 300 lithium share halted amid $109 million cap raise

Vulcan shares remain frozen amid the company launching a fully underwritten single-tranche placement to sophisticated and institutional investors to raise $109 million.

Vulcan will issue 21.4 million new fully paid ordinary shares at $5.10 per share. This represents a 17.2% discount to the last traded price of $6.16.

Placement proceeds will be used to buy long lead items for the construction of phase one of its Zero Carbon Lithium Project in Germany’s Upper Rhine Valley, as well as other purposes.

Vulcan hopes to commence phase one operations and production by the end of CY25.

Vulcan released an equity presentation and a copy of its international offering circular today.

The new Vulcan shares will commence trading on 15 May.

What else is going on with Vulcan shares?

Vulcan released its March quarter activities report and cash flow report, as well as a corporate presentation, last week.

Vulcan shares rose 3.8% on the reports.

Vulcan finished the quarter with 112 million euros in cash and equivalents, with funding for 10.2 quarters ahead.

The highlight of the quarter was the completion of Vulcan’s definitive feasibility study (DFS) for phase one of its commercial development.

This follows two years of successful operations at its pilot plant, proving its processes can produce lithium with zero fossils and a net zero carbon footprint.

The company says 2023 will be a “transformational year at Vulcan”.

Vulcan will conduct its annual general meeting in Perth on 29 May.

The post ASX 300 lithium stock Vulcan Energy halted amid cap raise appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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