EQS-News: Vulcan Energy Resources Limited: Extension of Conditional Debt Commitment Letter
Vulcan Energy Resources Limited (ASX: VUL, FSE: VUL), a pioneer in carbon-neutral lithium production, has announced an extension to its conditional debt commitment letter, which initially signed in December 2024. This extension comes as Vulcan advances its discussions with banking institutions to secure financing for the Phase One Lionheart Project.
Summary of the Extension
The debt commitment letter signed with a consortium of commercial banks last December has been extended until September 2025. This extension aligns with Vulcan’s revised timeline for finalizing debt agreements, anticipated to conclude in the second half of 2025. The consortium involved in this process includes the four Structuring Banks—ABN AMRO, ING, Natixis CIB, and UniCredit—alongside the European Investment Bank (EIB) and Export Credit Agencies (ECAs) such as Bpifrance AE, Export Development Canada, Export Finance Australia (EFA), and SACE. EFA was already a signatory to the commitment letter; thus, the extension was not necessary on their part, but they continue as active participants in the structuring group.
The extension falls under EFA’s conditional approval of €120 million, ensuring continued collaboration and involvement in Vulcan’s financing journey. Vulcan is diligently progressing discussions with banks, preparing for the finalization of documentation in the latter half of 2025. Recently, they have shared a comprehensive package of updated due diligence reports and long-form documentation pertinent to the project.
The basis of the commitment letter relies on information up to December 2024 and remains conditional on several factors, including the completion of due diligence, approvals from credit committees and boards, execution of legal documents in full form, and other prerequisites. BNP Paribas serves as Vulcan Energy’s debt advisor, with White & Case providing legal advice.
Progress and Future Prospects
Felicity Gooding, Vulcan Energy’s Group Chief Financial Officer, emphasized that the extension enables the potential inclusion of significant government funding in their financial package. Since December’s signing, Vulcan has achieved crucial milestones vital for the success of Phase One. These achievements include the production of battery-quality lithium hydroxide monohydrate and the project being awarded Strategic Project status under the European Commission’s Critical Raw Materials Act.
The discussions with their lending partners have been described as positive and constructive, with future updates anticipated as developments continue over the coming months.
About Vulcan Energy
Vulcan Energy is committed to establishing the world’s first carbon-neutral, integrated lithium and renewable energy business designed to decarbonize battery production. Their Lionheart Project, positioned in the Upper Rhine Valley Brine Field bordering Germany and France, boasts the largest lithium resource in Europe and ranks as a tier-one lithium project on a global scale.
Utilizing the natural geothermal heat to extract lithium from subsurface brines and converting it to battery-grade material, Vulcan employs its proprietary VULSORB® technology to provide sustainable lithium for European electric vehicle batteries. This initiative aims to supply a local, low-cost source of lithium essential for advancing Europe’s electric vehicle sector.
Disclaimer and Forward-Looking Statements
The information provided in this announcement includes forward-looking statements, which are inherently uncertain and subject to several risks and uncertainties specific to Vulcan’s industry and general economic conditions. These statements should be considered with caution, as actual results may vary significantly from any predictions made here.
Vulcan disclaims any intention or obligation to revise forward-looking statements to reflect subsequent events or circumstances beyond today’s date or the occurrence of unanticipated events. While Vulcan endeavors to provide accurate information, no assurances are given regarding the fairness, accuracy, or completeness of the information provided. The announcement does not constitute an offer or recommendation to purchase securities and should not be used as the basis for any investment decision.
The company released definitive feasibility and bridging engineering studies for its Phase One Project, with assumed material factors based on reasonable grounds, although the outcome of these factors remains uncertain. Some content relates to Phase Two, which has yet to undergo a definitive feasibility study.
Vulcan Energy continues to make strides in establishing itself as a cornerstone player in sustainable energy and resource production, contributing significantly to Europe’s strategic needs in renewable energy resources.
