The Vulcan Energy Resources Ltd [ASX:VUL] share price is up today more than 3.5% after they said they are looking to take full ownership of Global Geothermal Holding UG (GGH).
Vulcan’s ambition is to become the first zero carbon lithium producer in the world. They are looking to achieve this through their deep geothermal and lithium brine resource in the Upper Rhine Valley of Germany, Europe’s largest lithium resource.
What’s the deal?
Vulcan has entered into a binding agreement to get a 100% stake in GGH.
GGH currently holds 49% of the Taro License in the Upper Rhine Valley. Taro has a JORC resource estimate of 2.27 Metric tonnes of contained lithium carbonate equivalent at a 181 mg/l Li grade (indicated and inferred). GGH also holds several other exploration licenses in the region that include Ludwig and Hesbach.
Vulcan holds the remaining 51% interest in Taro after spending 500,000 euros in exploration. Under the current deal, Vulcan can get its stake up to 80% in the next two years by spending an extra 500,000 euros in exploration.
But instead, the company has decided to accelerate the process by buying GGH.
Vulcan’s Managing Director Dr Francis Wedin said:
‘By acquiring 100% of GGH, we are consolidating ownership of the Taro and other exploration licenses, which simplifies financing and development of our large strategic position in the Upper Rhine Valley. This consolidation is an important part of our strategy to become a major supplier of our unique Zero Carbon Lithium hydroxide to the European battery electric vehicle market.’
A string of announcements
GGH’s acquisition announcement comes after Vulcan went on to raise $120 million (before costs) earlier this month. And then moved on quickly last week to acquire GeoThermal Engineering GmbH (GeoT), a geothermal sub-surface consultancy they had already been working with.
GGH’s acquisition announcement has given a boost to the company. At time of writing the VUL share price is trading at $7.63.
It’s not surprising that Vulcan is getting serious about accelerating their project. Developing battery and energy storage is becoming crucial component in securing the move towards green energy.
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