As per an earlier post of mine https://hotcopper.com.au/posts/79308285/single the delay in the announcement of financing has been pushed back slightly to allow for the finalisation of further Government funding. More Government funding will be highly advantageous to shareholders as it will reduce the debt component on the project without further dilution......something worth waiting a few extra months for IMO.
The media is reporting that today's price drop "appears to have driven by weakness in the lithium industry today."
Today's announcement regarding the $196 million conditional debt commitment letter signed by the commercial bank group in December 2024 being extended until September 2025 just confirms that the debt commitment previously highlighted for the project is being extended to match the timing of the expected financing announcement previously outlined for "H2, 2025". Vulcan's CFO, Felicity Gooding, commented: "The extension of the debt commitment letter will allow us to potentially include significant government funding in the financing package."
There is nothing negative about today's announcement. All it is doing is aligning the timelines for the expected confirmation of Government funding, the formalisation of the finance package for the project and the continuing participation of the existing parties to the debt commitment in line with the new timeline. If anything, the extension to "September 2025" indicates that the financing announcement will likely be released during Q3....rather than going out until the end of H2, 2025 as previously noted. Today's price action has been influenced on those "selling the news" to attempt to promote panic.....like the usual suspects on these threads!
VUL Price at posting:
$3.94 Sentiment: Buy Disclosure: Held
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