Vulcan Energy Resources Ltd. said Feb. 4 that it has received firm commitments to raise A$120 million through an institutional placement, with the proceeds earmarked to support the company through to a final investment decision for its Zero Carbon Lithium project in Germany.

The placement will comprise an issuance of 18,461,538 new fully paid ordinary shares priced at A$6.50 apiece. The cornerstone investment was provided by Hancock Prospecting Pty Ltd., while BNP Energy Transition Fund provided a "significant investment."

The proceeds will be used for project development, feasibility study costs and permitting, with a definitive feasibility study due mid-2022. Proceeds will also be used for drill site acquisition and preparation and strategic opportunities to accelerate the development of the project, with Vulcan assessing options to acquire existing infrastructure.