Solaris exits Canada for Switzerland with new CEO, board and spin-out plans
The company changed its board of directors and plans to spin out non-core assets La Verde, Capricho, and Paco Orco into a new company.
Vulcan Energy Resources Ltd said on Thursday chemicals producer Nobian GmbH would invest 161 million euros ($177.76 million) in the lithium developer’s main lithium plant in Germany in exchange for a 50% stake in the project.
Vulcan is building out lithium production in Germany that will tap renewable energy from geothermal power in the Upper Rhine Valley. It plans to produce 24,000 tonnes per year lithium hydroxide monohydrate in its first phase.
Under the strategic non-binding agreement, Nobian’s investment will fund half of the projected capital expenditure for the lithium plant, with the rest to be secured via project debt finance.
As part of the agreement, Vulcan’s project will be split into two companies – one entity owning infrastructure to produce renewable energy and lithium chloride and the other controlling the main lithium plant.
“It is expected that Nobian’s equity contribution, alongside expected project debt finance to be obtained by the company … will fully cover the funding requirement for the (plant),” Vulcan said.
Nobian will assume 50% ownership of the entity which includes the main lithium plant, Vulcan said.
Vulcan is also in talks with “strategic counterparties” for equity funding of the first special purpose company and planning similar ownership structure to bring in project-level equity investment, it said.
($1 = 0.9057 euros)
(By Sameer Manekar; Editing by Maju Samuel and Arun Koyyur)
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