Vulcan Energy Resources (ASX:VUL) will partner with Nobian GmbH to form a 50/50 joint venture and equity financing for Vulcan’s Central Lithium Plant.
The joint venture is subject to the execution of definitive agreements within 10 weeks from the date of the term sheet. Nobian will contribute EUR 161 million (US$177 million) in cash as equity to fund capital expenditure for the CLP and will acquire 50% of the SPV2 Joint Venture, based on an agreed pre-money valuation of EUR322 million (US$354 million) for the CLP SPV2.
Vulcan has split Phase One of its integrated 24,000tpy Lithium Hydroxide Monohydrate and renewable energy project into two separate Special Purpose Vehicles. SPV1 includes the plant and infrastructure associated with the production of renewable energy and lithium chloride, while SPV2 includes the CLP which converts LiCl into LHM.
