The All Ordinaries Index (ASX: XAO) is down 0.34% in Friday morning trade, but that's not holding back this surging ASX lithium share.
Shares in the company – which is focused on delivering the world's first integrated renewable energy and zero carbon lithium project – closed yesterday trading for $4.76. In earlier trade, shares were changing hands for $5.38 apiece, up 13.0%.
At the time of writing, shares have retraced a touch, trading for $5.28, putting the ASX lithium share up 10.9% for the day.
Any guesses?
If you said Vulcan Energy Resources Ltd (ASX: VUL), give yourself a virtual gold star.
Here's what's got investors excited today.
Image source: Getty Images
ASX lithium share lifts on financing progress
The Vulcan Energy share price is surging today following an update on the company's financing process.
Phase one of the two-phase financing process is now complete. Vulcan said it had received significant interest from strategic and financial investors, commercial banks, the European Investment Bank (EIB) and "major government-backed export credit agencies".
The ASX lithium share said it had formally launched the second and final phase of its project-level debt and equity funding package for its integrated renewable energy and Zero Carbon Lithium Project, located in Germany.
With the support of global bank BNP Paribas, Vulcan has been running a two-phase debt and equity financing process to secure a 65% to 35% mix of debt and equity.
The formal debt launch package was issued today. Vulcan said it was entering formal discussions with four international banks – ABN-AMRO, ING, NATIXIS and UNICREDIT – and four export credit agencies that had expressed in-principle and non-binding interest.
The ASX lithium share said it was receiving continued support from the EIB. And it's applied for additional public funding through several grant schemes.
The project-level financing program remained on schedule for completion by the end of 2024.
Vulcan reported that it is also launching the second phase of its project-level equity financing process.
What did management say?
Commenting on the financing progress that's sending the ASX lithium share soaring today, Vulcan CEO Cris Moreno said this marked "a key milestone on our path to becoming Europe's first fully integrated carbon-neutral lithium producer".
Moreno added:
The high-quality nature of respondents in the first phase of our finance process is a strong signal of confidence in both our team's ability to deliver a world class project, and the credentials of Vulcan's integrated renewable energy and Zero Carbon Lithium Project, to enable a green energy and mobility transition for Europe.
This is an exciting period for the company, and we look forward to entering the formal discussion stage of our finance process with such exceptional and well aligned financing partners.
Vulcan Energy share price snapshot
While most ASX lithium shares have struggled this year, Vulcan Energy's share price has now soared a whopping 88% in 2024.
