The Toondoon project, 220km from Bundaberg, is being acquired for 37 million shares, equating to a consideration price of about A$2.6 million (given the deemed price of 7c per share).

Zeotech shares were at 8.7c today.

Toondoon has a 5 million tonne resource and is said by Zeotech to offer two opportunities.

Firstly, a near term cashflow DSO play, with 1Mt of near surface high-grade "raw" ore.

And secondly, as a feedstock to expedite synthetic zeolite technology commercialisation.

To be produced from Zeotech's technology and kaolin resources, zeolites are said to feature "superior adsorption and desorption powers (engineered by design) and reportedly offer "a vast range of commercial applications including replacing phosphates in laundry powders, as desiccants in energy efficient windows and refrigeration and as pollutant absorbers on a large scale".

Last year Zeotech conceded the cost of production has presented a headwind to wider adoption, albeit "synthetic zeolites still present a global market exceeding US$5.5 billion and growing".

Toondoon adds to Zeotech's Abercorn resource, 135km south of Gladstone (also in Queensland).

Zeotech also hopes use lithium process residue to produce synthetic zeolites.

Last May Zeotech raised A$3.7 million placing shares priced at 7c each.

Shares in Zeotech were down 15% to 8.7c in afternoon trade, capitalisng the company at $129 million.