Zeotech Ltd (ASX:ZEO), a mineral processing technology company, has executed a non-binding memorandum of understanding (MoU) with American animal nutrition company Protekta Incorporated for manufactured zeolite.
The MoU will seek to leverage Zeotech’s mineral processing technology and work towards a potential manufactured zeolite offtake agreement between the two parties.
Protekta holds a portfolio of evidence-based products designed to stave off illness through optimal nutrition, including a milk fever preventative treatment for cows that uses zeolite.
Pathway to offtake and commercial agreement
“We are pleased to be collaborating with an innovative company such as Protekta and the potential to supply our manufactured zeolite as a key ingredient to one of their leading animal nutrition products,” Zeotech CEO Scott Burkhart said.
“The MoU provides a framework for ongoing collaboration, with the aim of supplying a large product sample for further validation, alongside the potential for an offtake agreement that would advance the commercial readiness of the company’s proprietary mineral processing technology.”
The collaboration will work to agree on a set process for Zeotech to supply Protekta with a large sample of zeolite, having previously provided smaller samples for testing and analysis.
The agreement also provides an option for a joint venture or alternative profit-sharing structure that could advance Zeotech’s commercial reach in North America.
Extending relationship
“Protekta exists to advance the wellbeing of animals, and we are delighted to be extending our relationship with Zeotech under an MoU, and the potential to use its manufactured zeolite for one of our primary products,” Protekta founder and CEO Morten Jakobsen said.
“Protekta is a leader in animal nutrition solutions for the North American market and looks forward to progressing potential commercial opportunities with Zeotech.”
The MoU will expire on August 31, 2025, and the parties agree to bear their respective costs and expenses of negotiating and executing potential contracts and/or an offtake agreement.