Hazer Group (ASX: HZR) Secures $5.0m Strategic Placement From Mineral Resources Limited (ASX: MIN)
Both Hazer and Mineral Resources will enter into formal discussions towards the establishment of a JV to develop a commercial scale synthetic graphite plant
Perth, Australia , March 20, 2017 (Newswire.com) - Hazer Group Limited has executed a strategic capital raise for $5.0 million via a placement to existing shareholder Mineral Resources Limited (ASX:MIN), a leading and highly innovative full-service provider of mining infrastructure services in Australia.
The placement will involve the issue and allotment of 8,333,333 new fully paid ordinary shares at an issue price of $0.60 per share. Mineral Resources will also be issued with 4,166,167 unlisted options, each option giving the right to subscribe for one additional share at an exercise price of $0.70 per share, with an expiry date of 31 December 2019.
With a market capitalisation of over AU$2 Billion, Mineral Resources have been a long-term strategic shareholder in Hazer since the Company listed in December 2015. This placement will see Mineral Resources significantly increase their stake in Hazer and become a substantial shareholder of the Company, with a holding of 14%.
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.
The proceeds of the placement will be used to continue Hazer’s ongoing commercialisation and development of the Hazer Process - a low cost, low emissions hydrogen and graphite production 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.
Geoff Pocock, Managing Director of Hazer Group, 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. Mineral Resources have been significant supporters of the Company since our IPO, and this placement further aligns our interests. We are pleased that Mineral Resources see Hazer as a key part of their ongoing energy storage materials business, and we see them as an invaluable partner for the ongoing development and commercialisation of the Hazer technology.”
ABOUT HAZER GROUP LTD
Hazer Group Limited (“Hazer” or “The Company”) is an ASX-listed 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.
For further information, investor or media enquires, please contact:
Michael Wills – Hazer Group
Phone: 0468 385 208
Source: Hazer Group Ltd