Zeotech raises $13 million through share placement

Brisbane-based mineral processing company Zeotech has announced firm commitments supporting a capital raise worth $13 million before costs, part of which will support R&D on its low-carbon concrete-related product, AusPozz.

According to a statement from the ASX-listed company on Monday, the commitments were for a placement of 162,500,000 new fully-paid ordinary shares at a price of $0.08 each, and ensure the company is well-funded to advance its strategic initiatives through 2026.

The raise will cover capital expenditure to commence mining operations at the Toondoon Kaolin Project, following the recent $200 million binding offtake agreement with Jiangsu Mineral Sources International; an expanded drilling program at Toondoon; and progressing a definitive feasibility study (DFS) associated with the AusPozz Project, Australia’s first commercial production of high-reactivity metakaolin.

Managing Director Peter Zardo said Toondoon “is set to deliver significant cash flows from 2026” and that the DFS for the AusPozz project positioned Zeotech “to become Australia’s first  producer of high-reactivity metakaolin for the built environment.”  

Zeotech holds IP in the processing of kaolin into zeolite products, as well as applications for these. Zeolites have industrial uses including as adsorbents and catalysts.

Another part of its work is AusPozz, which is made of kaolin from Toondoon and used as an additive in cement and geopolymers.

Tests have shown that  as a supplementary cementitious material (SCM) additive in concrete, AusPozz has delivered improvements in strength when replacing a portion of cement.

Picture: credit Zeotech

Further reading

Zeotech gets backing for Australia’s first metakaolin production facility

Concrete breakthrough: Zeotech’s AusPozz smashes performance tests

Zeolites to be trialed to curb methane emissions