Vulcan receives $200m Letter of Support from Export Finance Australia - TechInvest Magazine Online

Vulcan Energy Resources (ASX: VUL) has received a conditional, non-binding Letter of Support from Export Finance Australia (EFA) for up to $200 million for the upcoming financing of Phase One of Vulcan’s Zero Carbon Lithium Project.

Noting the deepening relationship between Australia and the EU as part of the international push to develop and secure global supply chains for clean energy critical minerals, it is encouraging that we have secured substantial in principle financing support from government- backed export credit agencies (ECAs) both in Europe and in Australia,” Managing Director and CEO, Cris Moreno, said.

“EFA’s Letter of Support is encouraging and follows our successful market sounding conducted in the last few months, which has seen strong commercial and development bank support, as well as substantial in-principle ECA support for Phase One. This signal of confidence is timely and strengthens our position as we enter our project-level debt and equity financing for Phase One of the Zero Carbon Lithium Project in November.

“This is a tangible and powerful symbol of the sort of Australia – EU links sought as part of the Minerals Security Partnership, which includes Australia, Germany, France, the European Commission and the USA.”

Highlights

• The conditional, non-binding Letter of Support of A$200 million of finance from the Australian Government’s export credit agency EFA will be used towards the Phase One financing of Vulcan’s Zero Carbon Lithium Project.

• Following a successful market sounding period, Phase One project level debt and strategic equity financing is formally due to commence in mid-November, after completion of the Bridging Study.

• Vulcan’s Phase One financing process start is also timed to coincide with public funding applications in Germany.

• Vulcan has already secured substantial in-principle government-backed ECA support, subject to customary conditions, from Bpifrance Assurance Export, the French ECA, SACE, the Italian ECA, and EDC, the Canadian ECA.

• EFA’s Letter of Support could be converted into a binding agreement following customary conditions and financing terms being met, including but not limited to a confirmed level of Australian content; legal, technical, market and environmental due diligence reports; and acceptable lender and other contracts in place.

Vulcan’s unique Zero Carbon Lithium Project aims to decarbonise lithium production, through developing the world’s first net carbon neutral lithium business, with the co-production of renewable geothermal energy on a mass scale.

By adapting existing technologies to efficiently extract lithium from geothermal brine, Vulcan aims to deliver a local source of sustainable lithium for Europe, built around a net zero carbon strategy with exclusion of fossil fuels.

Already an operational renewable energy producer, Vulcan will also provide renewable electricity and heat to local communities. Vulcan’s combined geothermal energy and lithium resource is the largest in Europe, with license areas focused on the Upper Rhine Valley, Germany.