The placement will finance the commencement of phase one of the Lionheart project in Germany. Credit: BJP7images/Shutterstock.

Lithium producer Vulcan Energy has launched a €100m placement to finance the commencement of phase one of its Lionheart project in Germany.

This move is aimed at supporting critical project execution activities including the field development plan, engineering, procurement, and construction contracts for key infrastructure, and other capital and operational expenditures.

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The placement will result in the issuance of approximately 28 million shares at €3.57 each, marking an 11.9% discount to the company’s last traded price on the Australian Securities Exchange (ASX).

The placement has attracted €74m from institutional investors and €26m from strategic investors.

Vulcan is also planning a non-underwritten share purchase plan (SPP) targeting A$20m, allowing eligible shareholders from Australia and New Zealand to participate.

Shareholders will have the chance to purchase up to A$30,000 worth of shares, with Vulcan holding discretion over allocations.

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The funds from the placement and SPP will also contribute to Vulcan’s broader financing strategy, which aims to cover a A$3.61bn project cost through a mix of equity and debt.

Progress on debt financing includes conditional approval from Export Finance Australia for A$196.8m, while discussions for equity funding with potential strategic partners are ongoing, with final agreements expected in early 2025.

Last month, Vulcan negotiated with multiple lithium companies to license its filtration technology.

This move aims to generate a new revenue stream as the company progresses with its renewable energy-powered lithium project in Germany.