Zeotech (ASX:ZEO) has received firm commitments for a $13 million placement, which ensures the company is well-funded through 2026.
Existing and new institutional, professional, and sophisticated investors have committed to subscribing for about 162.5 million shares priced at $0.08 each.
Morgans Corporate acted as lead manager to the placement, of which $6.6 million will come from existing and company-introduced investors.
Funds raised will be allocated to advancing several initiatives, including the start of mining operations at the Toondoon Kaolin Project in Queensland.
This follows the recently cemented binding agreement worth over $200 million with major Chinese trading house, Jiangsu Mineral Sources International Trading Co (MSI), for an initial five-year (rolling) term.
The agreement provides MSI exclusive offtake and marketing rights for 950,000 tonnes of Zeotech’s direct shipping ore (DSO) kaolin products in China – including Taiwan and Hong Kong, as well as South Korea, and Japan.
The additional cash will also allow Zeotech to advance to a Definitive Feasibility Study for its AusPozz™ Project.
The aim is to advance AusPozz™ high-reactivity metakaolin production in Queensland, Australia, as a low-carbon, high-performance supplementary cementitious material that serves as a key enabler in decarbonising Australia’s built environment.
AusPozz™ produces 79% less carbon emissions than ordinary Portland cement.
The product has demonstrated the ability to enhance strength development and therefore reduce the total cementitious content of the concrete, which not only reduces embodied carbon, but also the overall cost per cubic metre.
In early September, Zeotech demonstrated the high-performance metakaolin used to create low-carbon concrete could be deployed on a commercial scale.
This pour of 17 truckloads of concrete led to a memorandum of understanding, announced last week, with global construction firm Laing O’Rourke.
Managing Director Peter Zardo says the participation of both existing shareholders and institutional investors in the placement is a strong endorsement of Zeotech’s progress and future potential.
“The funds raised will accelerate development of the Toondoon Kaolin Project, which is set to deliver significant cash flows from 2026, while advancing the Definitive Feasibility Study for the AusPozz™ Project,” he says.
Zardo says this positions the company to become Australia’s first producer of high-reactivity metakaolin for the built environment.
“These initiatives are central to our vision of delivering high-performance, low-carbon building materials.”
Zeotech also plans to allocate some of the funds raised to undertake an expanded drilling program at Toondoon to target an increase in the high-grade kaolin resource and deliver a maiden reserve.
The company will be attending this year’s Noosa Mining Investor Conference, held between 12-14 November 2025, at the Peppers Noosa Resort. Mining.com.au is a media partner for this year’s event.
Write to Angela East at Mining.com.au
Images: Zeotech
