The Vulcan Energy Resources Ltd (ASX: VUL) share price won't be going anywhere on Tuesday after the company requested a trading halt.
Image source: Getty Images
What's the trading halt for?
Vulcan said the trading halt was requested pending an announcement to the market in relation to a capital raising.
The company advised that its shares will remain halted until Thursday, 16 September or until an announcement is made in relation to the outcome of the capital raising.
According to the company's June quarterly cash-flow report, it had $114.7 million in cash and cash equivalents at the end of the period.
Capital raising highlights
Vulcan launched an institutional placement to raise $200 million at an offer price of $13.50 per share. The offer price represents a 15.1% discount to its last closing price of $15.90 on Monday, 13 September.
In addition, the company intends to undertake a share purchase plan for existing eligible shareholders to raise up to a further $20 million.
The company is busy working through a number of prerequisites before construction kicks off for its flagship Zero Carbon Lithium project. This includes securing offtake agreements, the completion of a definitive feasibility study, and additional exploration activities.
Vulcan said the proceeds from the offer will be used to "accelerate exploration initiatives and expand Vulcan's dual renewable energy and lithium development strategy".
Vulcan share price rides the lithium hype
The Vulcan share price has climbed the ranks from a mere small cap 12-months ago to joining the S&P/ASX 300 (INDEXASX: XKO) index following the most recent indices rebalance.
Vulcan is aiming to become the world's first lithium producer with net-zero greenhouse gas emissions. The company's flagship Zero Carbon Lithium Project aims to operate as both an energy and lithium business, from the same geothermal brine resource.
The Vulcan share price continues to boom in 2021, up 474% year-to-date.
