Zeotech has secured firm commitments to raise well over $2 million of capital via a Placement to sophisticated investors, with an eye to ramping up processing at its high-grade Toondoon kaolin project held under an approved Mining Lease.
Zeotech (ASX:ZEO) will issue circa 53 million shares at 4.2 cents a share as the emerging mineral processing tech firm tightens focus on a three-pronged R&D and commercialisation strategy.
ZEO says the $2,209,930 will also go toward funding research with Griffith University where ZEO is developing and validating the application of its products to control landfill methane emissions.
And according to Zeotech managing director, Peter Zardo, the funds will also support the fit-out of the new lab facilities at Brisbane Technology Park where ZEO is building inhouse research capabilities and sample production capacity.
ZEO will issue a total of 52,617,380 shares at $0.042 (4.2 cents) per share, together with a free attaching one- for-two option, with an exercise price of $0.10, and an expiry date by 30 September 2024.
The shares and options will be issued within the company’s existing 15% placement capacity.
The time is right for zeolite
Zardo said the company was delighted with the successful placement.
“We value the strong support from our existing shareholders, together with welcoming some new investment, which highlights the level of interest in the projects the company is advancing.”
ZEO snapped up the Toondoon project, some 220km from Bundaberg, around this time last year for 37 million shares, or about $2.6 million (at the then 7c per share).
Toondoon has a 5 million tonne resource (high alumina and low iron) and Zeotech considers it both a near-term cashflow DSO play, with 1Mt of near surface high-grade “raw” ore, ready to be cost effectively mined. The Company tabled in a recent investor presentation “It had appointed an Indian relationship manager to deepen breadth of engagement, facilitate discussions and provide due diligence on prospective companies” with “Indicative DSO FOB and CIF pricing issued to Indian prospects late August”.
The project also offers optimal feedstock to fast-track manufactured zeolite technology commercialisation.
Zeolites feature “superior adsorption and desorption powers (engineered by design) and are said to offer “a vast range of commercial applications including replacing phosphates in laundry powders, as desiccants in energy efficient windows and refrigeration and as pollutant absorbers on a large scale”.
This article was developed in collaboration with Zeotech, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.