MEC Raises $2.74M, Advances Advent Loan, and Eyes Clean Hydrogen Growth

Corporate and Financial Update

MEC Resources Ltd (ASX, MMR) reported a solid quarter ending 30 June 2025, marked by a successful capital raise of $2.74 million before costs. This funding underpinned an additional investment in Advent Energy Ltd, including a $750,000 loan with a 5.1% interest rate and a two-year term. The company also extinguished liabilities of $581,655 through the issuance of offset shares, reflecting prudent balance sheet management.

Importantly, MEC completed the vesting of over 99 million shares to key company officers following the reinstatement of its securities to trading status on the ASX in December 2024. This move aligns management incentives with shareholder interests as the company advances its strategic objectives.

PEP-11 Joint Venture Legal Developments

MEC holds a 37.95% interest in Advent Energy, which in turn controls the PEP-11 Joint Venture alongside Bounty Oil and Gas NL. The joint venture’s permit, critical for offshore energy exploration, faced a setback when the National Offshore Petroleum Titles Administrator (NOPTA) refused renewal applications in January 2025. Advent Energy has since initiated judicial review proceedings in the Federal Court seeking to overturn this decision.

While the permit remains in force for now, pending court outcomes, the legal uncertainty casts a shadow over the joint venture’s near-term prospects. No new developments were reported during the quarter, leaving investors awaiting further clarity on this pivotal regulatory matter.

Clean Hydrogen Technologies, A Growth Opportunity

On the innovation front, MEC’s exposure to Clean Hydrogen Technologies (CHT) through Advent is gaining momentum. CHT has demonstrated successful pilot production of turquoise hydrogen and carbon composites in India, with zero CO2 emissions from natural gas feedstock. The company is finalizing engineering designs for production plants in Maharashtra, India, and Louisiana, USA, targeting industrial markets with strong demand.

CHT is actively seeking approximately US$2.5 million to commence construction, with expectations to generate revenue within 3-4 months of funding. This positions MEC to benefit from the global energy transition towards cleaner hydrogen solutions, complementing its broader investment mandate in early-stage exploration and energy technologies.

Cash Flow and Operational Position

MEC’s cash flow statement reveals a net increase in cash of $2.04 million for the quarter, primarily driven by financing activities. Operating cash outflows of $79,000 reflect ongoing corporate and administrative expenses, while investing activities included the Advent loan advance. The company reports no new financing facilities, maintaining a cash balance sufficient to support its current operations and investment plans.

Overall, MEC Resources continues to navigate a complex landscape of regulatory challenges and emerging clean energy opportunities, leveraging its pooled development fund status to back promising ventures in the energy sector.