German-Australian lithium miner Vulcan Energy Resources Ltd said on Thursday it had received firm commitments for its A$200 million ($146.58 million) institutional placement, backed strongly by shareholders including Hancock Prospecting.
The placement at an offer price of A$13.50 a share is a 15.1% discount to the last close of A$15.90 on Monday.
Vulcan, backed in part by Australian investor Gina Rinehart’s Hancock Prospecting, also intends to raise up to another A$20 million from existing investors through a share purchase plan at the same price as the placement, the company said.
Funds raised would be used to progress Vulcan’s zero carbon lithium development in Europe, which has an offtake deal with the battery unit of South Korea’s LG Chem Ltd.
Shares of the energy metals exploration company skidded as much as 9.43% to A$14.4 by midday trading.
($1 = 1.3644 Australian dollars)
(By Riya Sharma; Editing by Rashmi Aich)