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.”
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.
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.