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Hancock Prospecting lifts stake in Vulcan Energy

Strategic investments by CIMIC Group and Hancock Prospecting

€40 million (~A$65 million) placement enables Vulcan to maintain project momentum with strongly aligned strategic partners during final phase of project financing

Vulcan Energy Resources Limited (Vulcan, ASX: VUL, FSE: VUL, the Company) is pleased to announce a total of €40 million (~A$65 million) in strategic investments by CIMIC Group (CIMIC) of €25 million (10 million shares), Hancock Prospecting Pty Ltd (HPPL) of €12.5 million (5 million shares) and Victor Smorgon Group (Smorgon) of €2.5 million (1 million shares) via private placements (the Investments). The Investments demonstrate commitment from strategic investors to support the lithium value chain globally and the construction of Phase One of Vulcan’s integrated renewable energy and ZERO CARBON LITHIUMTM Project (the Project) in Germany.

Highlights

  • CIMIC is an engineering-led construction, mining, services and public private partnerships leader working across the lifecycle of assets, infrastructure and resources projects. It is a member of the German headquartered HOCHTIEF Group, which has a leading position in Europe and a rapidly expanding presence in energy transition and sustainable infrastructure markets. Through its €25 million Investment, CIMIC becomes a substantial shareholder of Vulcan with a shareholding of ~6% of the outstanding share capital of Vulcan.

  • HPPL is Australia’s most successful private company and has maintained a significant shareholding in Vulcan since January 2021. Through its €12.5 million Investment, HPPL has increased its substantial shareholding to ~7.5% of the outstanding share capital of Vulcan. HPPL will become Vulcan’s second largest shareholder.

  • The price of €2.50 per share (A$4.08 per share) is a 9% discount to Vulcan’s 30-day volume weighted average price (VWAP) of shares trading on the ASX prior to the date of this announcement.

  • The funds raised enable the early validation works for the Engineering Procurement and Construction Management (EPCM) contract for Vulcan’s Phase One lithium plant, and other activities including engineering and the pre-ordering of long lead items. The EPCM validation will be carried out by CIMIC company Sedgman and HOCHTIEF.

  • These strategic Investments will materially contribute to the funding of pre-execution activities during the final stage of Project financing and protection of the Project’s deterministic execution schedule.

MD and CEO Cris Moreno stated, “Today’s investments into Vulcan by CIMIC Group and Hancock Prospecting come at a particularly exciting time for Vulcan as we make significant headway towards developing Phase One of our flagship integrated renewable energy and ZERO CARBON LITHIUMTM Project. The substantial investments by both parties will enable the early commencement of important validation works ahead of the formal EPCM contract, maintaining momentum on the project timeline and optimising the overall execution program as we move towards final funding and construction.We warmly welcome CIMIC Group in becoming a substantial shareholder and are excited about the increased investment by our long-term shareholder Hancock Prospecting. Both parties have demonstrated experience in the delivery of globally significant, major projects and are eminently complementary to Vulcan’s strategy of producing Europe’s first sustainable battery-grade lithium products.”

 

About CIMIC GroupCIMIC Group is an engineering-led construction, mining, services and public private partnerships leader working across the lifecycle of assets, infrastructure and resources projects. CIMIC Group comprises its construction businesses CPB Contractors, Leighton Asia and Broad, mining and mineral processing companies Thiess (joint control) and Sedgman, industrial services specialist UGL and development and investment arm Pacific Partnerships – all supported by in-house engineering consultancy EIC Activities.

CIMIC Group’s mission is to generate sustainable returns by delivering innovative and competitive solutions for clients and safe, fulfilling careers for its people. With a history since 1899, and around 30,000 people in around 20 countries, it strives to be known for principles of Integrity, Accountability, Innovation and Delivery, underpinned by Safety.

About Hancock Prospecting Pty LtdHancock Prospecting Pty Ltd (HPPL) is Australia’s most successful private company, with significant investments spanning mining, energy, and agriculture, including being the majority owner and operator of Roy Hill Holdings, one of Australia’s major resource-based operations. HPPL and Vulcan have shared a supportive, long-term relationship, with HPPL maintaining a top-5 shareholding position in the Company since January 2021. Today’s investment builds upon this, with HPPL increasing their ownership to ~7.5% of Vulcan’s issued capital. Vulcan welcomes HPPL’s increased investment and looks forward to a further continuation of the strong partnership between the two companies.


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