- Mineral processing technology company, Zeotech (ZEO) taps investors for $2.2 million to advance its projects
- Sophisticated investors have made firm commitments for a placement comprising around 52.6 million shares at 4.2 cents each
- The fresh capital will help fund a research program with Griffith University, aimed at validating the application of ZEO’s products for controlling landfill methane emissions
- Additionally, the funds will enable ZEO to progress its Toondoon kaolin project and support the fit out of new lab facilities in Brisbane
- Following a trading halt, shares are down 12.5 per cent and are trading at 4.2 cents at 2:13 pm AEST
Mineral processing technology company, Zeotech (ZEO) has tapped investors for $2.2 million to advance its projects.
The company emerged from a trading halt today, revealing that it had secured firm commitments from sophisticated investors for a placement of around 52.6 million shares at 4.2 cents each.
The shares will include a free-attaching one for two option exercisable at 10 cents and expiring on September 30, 2024.
With the fresh capital, Zeotech is looking to progress its Toondoon kaolin project in Queensland which it acquired last year.
The funds will also go towards a research program with Griffith University that is aimed at developing and validating the application of ZEO’s products for controlling landfill methane emissions.
Additionally, Zeotech has established new lab facilities at Brisbane Technology Park to grow in-house research capability and sample production capacity, and said the funds will support the fit out.
The company’s Managing Director, Peter Zardo said the strong support received for the placement highlights the level of interest in the company’s projects.
The raise comes just under a month since Goody Investments began legal proceedings against the company, seeking damages of $1.4 million in respect to second milestone performance rights issued under the acquisition of the Abercorn project.
Zeotech was served a Writ and Statement of Claim that alleges it was subject to an obligation to undertake the Abercorn Project Scoping Study to satisfy the second performance milestone by the expiry date.
The claim is being reviewed with ZEO’s legal advisors, and the company will be defending the proceedings.
Shares resumed trade today and were down 12.5 per cent to trade at 4.2 cents at 2:13 pm AEST.