Calix (ASX:CXL) has signed a $10 million strategic investor agreement to advance its Zesty Green Iron Demonstration Project towards a final investment decision (FID).
The company executed a simple agreement for future equity (SAFE) with an undisclosed strategic investor to fund project construction in the Kwinana-Rockingham Strategic Industrial Area in Western Australia.
Under the SAFE, the contribution may convert into shares in Zesty, a subsidiary established to commercialise and license the technology to the iron and steel industry. The agreement sets no fixed conversion price and contains no valuation caps or discounts.
Investment drawdown remains conditional on securing full finance, obtaining all necessary approvals, and reaching a positive FID.
The $10 million contribution counts towards matched funding requirements under Calix’s $44.9 million grant agreement with the Australian Renewable Energy Agency (ARENA).
Rio Tinto (ASX:RIO) is also investing more than $35 million in the project under a joint development agreement announced on 24 July 2025. Rio’s commitment includes an $8 million cash contribution alongside in-kind support credited towards ARENA milestones, carrying the option to take equity in Zesty up to the value of its cash input.
Managing Director Phil Hodgson says the transaction complements existing partnerships.
“Following our strategic partnerships with Rio Tinto and Perdaman, this investment helps to match grant funding from ARENA and progress the Zesty Green Iron Demonstration Project towards FID. This remains our top priority,” Hodgson says.
“The support from a sophisticated industry participant further validates the potential of the Zesty technology to supply the growing demand for Direct Reduced Iron for the global steelmaking sector, help future-proof Australian iron ore and deliver further positive economic and environmental impact in a low-carbon future.”
Calix is an Australian industrial technology company developing patented decarbonisation solutions for heavy industries, including iron and steel, cement, alumina, and critical minerals.
Write to Paula Fabe at Mining.com.au
Main image: Calix
