Tech Capital

Hazer Group completes strategic placement to major shareholder

Hazer has raised $5 million in a placement with an SPP to follow.
money_on_financial_documents,_sized_58cf1f008fcfc.png
The placement increases Mineral Resources’ stake to 14%

Hazer Group (ASX:HZR) has issued 8.33 million shares priced at $0.60 raising $5.0 million to major shareholder and ASX-listed Minerals Resources (ASX:MIN).

Shares also come with a 1:2 unlisted option exercisable at $0.70 expiring 31 December, 2019.

In addition to the placement, Mineral Resources and Hazer have agreed to enter into formal discussions towards the establishment of a joint venture to develop a commercial scale synthetic graphite plant, to supplement Mineral Resources’ significant existing battery materials business.

Mineral Resources is a leading and innovative full-service provider of mining infrastructure services in Australia.

Geoff Pocock, managing director, commented: “We are delighted to have secured the support of Mineral Resources, and are looking forward to working with them to bring our first commercial scale plant to fruition.”


Background

Hazer Group is a technology development company undertaking the commercialisation of the Hazer process, a low-emission hydrogen and graphite production process.

The Hazer process enables the effective conversion of natural gas and similar feedstocks, into hydrogen and high quality graphite, using iron ore as a process catalyst.


Use of funds

The proceeds of the placement will be used to continue Hazer’s ongoing commercialisation and development of the Hazer process.

The new capital will also enable Hazer to expand the capability of the pre pilot plant and commence planning for further scale up of the Hazer process.


Upcoming share purchase plan

In conjunction with the placement, Hazer will undertake a share purchase plan (SPP) raising up to $3 million.

The SPP will be conducted at $0.60 per share being the same price as the placement.

Participation in the SPP will be voluntary and available to shareholders registered on the record date of 17th March 2017 and whose registered address is in Australia or New Zealand.


Analysis

This placement not only provides Hazer with access to valuable short term funding but provides a strategic platform for growth with Mineral Resources, a company with a $2+ billion market cap.

Mineral Resources has been a significant supporter of Hazer since its ASX listing and this placement further aligns the two company’s interests.

The deal is evidence that Mineral Resources see Hazer as a key part of its ongoing energy storage materials business, which in turn makes them a valuable partner for the development and commercialisation of the Hazer technology.

Hazer shares have more than tripled since their December 2015 initial public offering, currently trading at $0.655.

News flow related to the formalisation of the joint venture will be highly anticipated.



Register here to be notified of future HZR Company articles
View full HZR profile

Hazer Group Timeline

View All

Related Articles

© tech Capital 2017

Tech Capital, a subsidiary of Proactive Investors, acts as the vanguard for listed tech companies to interact with institutional and highly capitalised investors.
Headquartered in London, Tech Capital is led by a team of Europe's leading analysts and journalists, publishing daily content, covering all key movements in the Technology market.