DL E&C Co. to acquire 9pc stake in NeuRizer (ASX:NRZ)

• NeuRizer (NRZ) signs an agreement for a private share placement to its international construction partner DL E&C Co.
• This construction company will hold approximately 9.1 per cent of the company’s issued capital following the agreement
• The share placement will raise US$10 million (A$14.4 million) at 15 cents a share, with a settlement date expected to be on July 6
• The Urea project’s vast feedstock reserves, low cost of production and technology demonstration underpins the third-party validation and investment by a major international cooperation
• Shares in NeuRizer are up 9.68 per cent, trading at 17 cents as of 11:41 am AEST

NeuRizer (NRZ) has signed an agreement for a private share placement to its international construction partner DL E&C Co.

The placement will see DL E&C pay US$10 million (A$14.4 million) to acquire a 9.1 per cent stake in NeuRizer at 15 cents a share, with a settlement date expected to be on July 6.

While the proposed shareholding substantial, it is below the takeover and Foreign Investment Review Board (FIRB) thresholds.

NeuRizer Managing Director Phil Staveley said DL E&C is a critical project partner in terms of scoping and development and welcomed the company as a key long term shareholder.

“DL E&C’s eagerness to participate in the significant value created by NeuRizer upon construction completion of the NeuRizer Urea Project is a welcome commitment from our highly valued project partner,” Mr Staveley said.

“This is a long term value investment and not one with a short term time horizon.”

The construction company recognises that the Urea project (NRUP) is not only a project of national significance for Australia but is a major project in the context of the international markets for urea production and distribution, NeuRizer said.

Further, the project’s vast feedstock reserves, low cost of production and technology demonstration underpinned the third-party validation and investment by a major international cooperation.

Since DL E&C became NeuRizer’s partner, it has facilitated a letter of support with a major financial institution in South Korea to provide 70 per cent of the capital requirements to construct the project and assisted NeuRizer to formalise partnerships with other international top firms in the planning and design phase of the project.

Shares in NeuRizer were up 9.68 per cent, trading at 17 cents as of 11:41 am AEST.