- Zeotech (ZEO) is set to acquire the 28,000-hectare Toondoon Kaolin Project in Queensland in a deal valued at up to $2.6 million
- ZEO says the acquisition will grant it access to one of Australia’s highest-grade kaolin deposits
- As consideration for the buy, Zeotech will issue 37 million fully paid ordinary shares at $0.07 per share to Kalotech
- The company affirms the project bears near term cashflow potential, citing the presence of “one million tonnes of near-surface high-grade raw ore”
- Zeotech shares are down 13.2 per cent to trade at 8.9 cents
Zeotech (ZEO) is set to acquire the 28,000-hectare Toondoon Kaolin Project in Queensland in a deal valued at up to $2.6 million.
The company executed a term sheet with Zilotech Holdings to acquire 100 per cent of the issued capital in Kalotech, which holds a legally binding exercised option to acquire the mining lease and exploration licences for the project.
In completing this acquisition, Zeotech would hold what it considers one of the highest grade raw ore kaolin deposits in Australia. The project is situated approximately 20 kilometres south of Munduberra.
As consideration for the Kalotech acquisition, Zeotech will issue 37 million fully paid ordinary shares at $0.07 per share and reimburse mining and exploration tenement costs up to $350,000.
Zeotech affirms the project bears near term cashflow potential, citing the presence of “one million tonnes of near-surface high-grade raw ore.”
Zeotech Managing Director, Peter Zardo, said the deal will grant the company access to some of the highest grade raw kaolin in Australia.
“Access to direct ship ore (DSO) grade kaolin will also allow management to progress discussions with international partners to fast-track securing DSO offtake agreements,” he said.
“Preparation of the mining plan is a priority and further test work will commence in the near term, with an aim to expand the existing JORC resource at the project and identify other high grade, prospective exploration targets.”
Zeotech shares were down 13.2 per cent at 2:53 pm AEST to trade at 8.9 cents.