Zeotech (ASX:ZEO) has raised AU$13 million through a placement of 162.5 million new shares at AU$0.08 each, priced at a 12.4% discount to the 30-day volume weighted average price, according to a Monday Australian bourse filing.

The placement, supported by over AU$6.6 million from cornerstone and key investors, ensures the company is well-funded to advance its strategic initiatives through 2026, per the filing.

The shares will be issued within the company's existing 15% placement capacity, eliminating the need for shareholder approval, the filing said.

Funds raised will be used for capital expenditure to start mining at the Toondoon kaolin project, advance the AusPozz feasibility study, expand drilling at Toondoon to increase high-grade kaolin resources and establish a maiden ore reserve, and for general working capital, the filing added.