The company is commercialising its low-emission hydrogen and graphite production process which enables the effective conversion of natural gas into hydrogen and high-quality graphite.
Hazer chief executive officer Geoff Ward said this was a very positive start to the year and the company appreciated the continued support of its shareholders.
“Including the proceeds from the exercise of options, the company had $6.6 million of cash as at December 31, 2018.
“[This puts] us in a strong position as we look to take our Hazer Process technology forward through establishing a commercial demonstration plant in 2019.
“In addition, we have lodged our research and development tax incentive assessment for FY18 and anticipate receiving a cash rebate of C$1.5 million during the first quarter of 2019.”
The company received final acceptances to exercise 3,448,850 listed options with an exercise price of 30 cents a share, raising $1.034 million.
A further $236,500 was raised from the exercise of 788,333 listed options in the weeks prior to the final exercise process.
The exercise of 4,721,489 unlisted Series C options in a number of transactions since September netted Hazer more than $1.18 million.
The unlisted options had an exercise price of 25 cents each and were held by current and former directors and management.
Hazer’s focus for 2019 will be developing its front-end engineering studies for an initial commercial demonstration plant.
The company will also complete concept studies for a range of initial commercial-scale plants.
Hazer is looking at a commercial demonstration project capable of operating on a continual, 24/7 basis producing 100 tonnes per annum of hydrogen and 375 of graphite.
The target capital cost is around $10 million.
Securing an ongoing commercial demonstration project that allows Hazer to demonstrate hydrogen sales and build sales interest for graphite would be a material achievement for the company.