The Vulcan Energy Resources Ltd [ASX:VUL] shares boosted up over 7% today after the company announced they’ve chosen BNP Paribas to assist with their Zero Carbon Lithium project.
Vulcan’s main mission is to become the first lithium producer in the world with net-zero greenhouse gas emissions. Their focus is their Zero Carbon Lithium project, as well as targeting the European market.
Vulcan chooses BNP Paribas as their financial advisor
Vulcan said today it has appointed BNP Paribas to help them finance their Zero Carbon Lithium project.
As Vulcan noted on the release, BNP Paribas is ‘a leader in sustainability with a strong track-record in advisory and financing of battery and renewable projects.’
Some of their projects include Northvolt’s Gigafactory in Sweden, a €1.3 billion project. There is also Dogger Bank, a group of offshore wind farms in the North Sea still under construction and set to cost £5.5 billion. BNP was also one of the first members of the Net-Zero Banking Alliance, an initiative introduced in April this year by the United Nations Environment Programme Finance Initiative.
Vulcan’s Managing Director Dr Francis Wedin said:
‘It is important to work with partners who share our sustainability goals and values. BNP Paribas is a leader in financing and advisory in the renewables and battery supply chain sector in Europe, with a strong focus on ESG.’
In the last month Vulcan’s share price has gained around 46%. It recently got a boost after a Life Cycle Assessment (LCA) study released their results estimating that the project would produce negative carbon emissions. You can read more on that
And afterwards it announced it was looking to dual list in the Frankfurt Stock Exchange, with the objective of giving the company more international exposure and access to European investors. You can read more on that here.
What happens next to the VUL Share Price?
Both Vulcan and BNP Paribas will be working together on a bankability review that will pave the way for the Definitive Feasibility Study (DFS). Once the DFS is done, they will shift onto the structuring and execution part of the project’s financing.
At time of writing, shares are trading at $12.99, that’s 7.34% higher from the previous close.
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