VUL megathread, page-6255

It is important to remember how Vulcan are structuring the raising of equity side of the capital (35%) principally via Special Purpose Vehicles 1 & 2 at the Project Level, not at the Parent level. The remaining funds, 65% is planned to come via debt financing.

This means funds are raised directly from strategic partners, with Nobian being the main proposed partner for the downstream chemical conversion of Lithium Chloride into into Lithium Hydroxide at Hochst (SPV2).

Franics Wedin, Cris Moreno and even Vincent Ledoux-Pedailles more recently have been commenting on the strategic interest of Oil & Gas (O&G) Majors who are particularly interested in partnering with Vulcan on the upstream component of the project (SPV1).

The intention is to raise funds directly from these groups that values the company in-line with the NPV of the project laid out in the DFS. Therefore, the full remaining equity component of the capex of the project will not be via a raise to the usual institutional funds and retail, but in a more considered way that minimises dilution to the number of shares on issue.

Vulcan are also pursuing funding via EU and State-specific funds linked to the Critical Raw Materials Act, which was just approved by the EU Parliament yesterday further reducing the future amounts of equity funding required from existing shareholders.