MinRes increases Hazer stake

Graphite-focused tech company Hazer Group has announced plans to form a joint venture with diversified business Mineral Resources, after MinRes boosted its stake in Hazer by subscribing for $5 million worth of shares.

Perth-based Hazer has completed a $5 million placement to MinRes, through the issue of 8.3 million shares at 60 cents each.

The placement, priced at a 4.7 per cent discount to Hazer’s five-day volume-weighted average price, will increase MinRes’s shareholding in the company to 14 per cent.

Hazer also revealed that the company had entered into discussions with MinRes for the establishment of a joint venture that would develop a commercial-scale synthetic graphite plant, combining Hazer’s ‘Hazer Process’ with MinRes’s lithium portfolio.

Hazer is also undertaking a $3 million share purchase plan, priced the same as the private placement to MinRes.

The proceeds of the raising will be used to fund ongoing commercialisation and development of the Hazer Process, which produces low-cost clean hydrogen and battery-grade synthetic graphite.

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

“MinRes has been significant supporters of the company since our IPO, and this placement further aligns our interests.”

Hazer listed on the ASX in December 2015, after completing a $5 million initial public offering at 25 cents per share.

At midday today, Hazer shares were 1.6 per cent higher to 63.5 cents each.