The Vulcan Energy Resources Ltd (ASX: VUL) share price is falling on Friday morning.
At the time of writing, the lithium developer’s shares are down 3.5% to $10.10.
What’s going on with the Vulcan share price?
The Vulcan share price is falling today despite the release of an announcement relating to its drilling plans.
According to the release, the company has agreed to acquire two electric drill rigs as part of its Zero Carbon Lithium Project from Aftermarket Drilling Service IT-AG.
The release notes that these specialised rigs can drill to the target depth required for deep geothermal energy wells in the Upper Rhine Valley, Germany.
And while this may not seem worthy of announcing, let alone as a market sensitive announcement, the company highlights that these deep geothermal rigs represent a scarce, strategic asset for Vulcan. Particularly as Europe navigates an energy crisis and the increasing need for renewable heating. Furthermore, management notes that the electric rigs will ensure drilling can be conducted with minimum greenhouse gas emissions, consistent with Vulcan’s strict carbon neutral focus.
However, this announcement hasn’t been enough to distract investors from the ongoing short seller attack, which has been weighing on the Vulcan share price.
Acquisition ‘an important step’
Vulcan managing director Dr Francis Wedin believes the acquisition of these electric drill rigs is an important step for the company.
He said: “The acquisition of the electric drill rigs will be an important step in advancing the Zero Carbon Lithium Project towards production. Funded with a portion of the proceeds from our recent $200 million capital raising, which was strongly supported by existing and new institutional investors, the acquisitions will demonstrate our willingness and ability to capitalise on strategic opportunities to ensure timely project development.”
“Consistent with our strategy to evaluate the production and sale of heat as well as power from our planned geothermal projects, the deep geothermal rigs will give us the potential to generate renewable energy, as we continue discussions with multiple local stakeholders to provide renewable heating to communities and renewable power to the German grid,” Dr Wedin added.