Calix signs $10M green iron deal
By Liezl GambeKey points
- Calix secured an agreement for a $10 million cash contribution to advance its Zesty demonstration project.
- Following the morning announcement, shares of Calix rose 5.88% to trade at $0.27.
- Calix stated that the funds will help satisfy matched funding conditions for an existing government grant.
Calix (ASX:CXL) executed an agreement for a $10 million cash investment to fund its Zesty green iron demonstration facility.
The new capital builds on an earlier $44.9 million grant agreement executed with the Australian Renewable Energy Agency.
"Following our strategic partnerships with Rio Tinto and Perdaman, this investment helps to match grant funding from ARENA and progress the Zesty Green Iron Demonstration Project towards FID. This remains our top priority," said Calix Managing Director and CEO Phil Hodgson.
The funding agreement permits the cash to convert into equity in subsidiary Zesty without valuation caps.
Following the announcement, the Calix share price was up at $0.26.
Partner Rio Tinto (ASX:RIO) previously agreed to provide over $35 million in capital and in-kind development support.
Calix stated that project construction remains subject to securing full finance, regulatory approvals, and a final investment decision.
