Join our daily newsletter At The Bell to receive exclusive market insights
- Altech Chemicals (ATC) has announced its US$90 million mezzanine loan is still ongoing
- The high purity alumina producer held a meeting with its lender, Macquarie Bank, who has reaffirmed its interest in providing the loan
- Before Macquarie can facilitate the loan, it needs to satisfy due diligence, various approvals and arrangements with its senior lender
- The funds are going towards Altech’s HPA processing plant and positioning itself as a leading producer of HPA at a 99.99 per cent grade
- Altech has closed 4.11 per cent in the red with shares trading for seven cents each
Altech Chemicals (ATC) has provided an update on its proposed US$90 million (approx. A$135.9 million) mezzanine loan facility.
The high-purity alumina (HPA) producer continues to work with Macquarie Bank, its preferred mezzanine lender, to secure the loan in question.
Recently, an update meeting was held with Macquarie in London. During the meeting, Macquarie reaffirmed its continued interest in providing the loan.
It seems its faithful interest ties into the recent increased profile of the planned construction of a lithium-ion battery plant in Europe, as well as an industry preference for securing long-term battery materials.
Altech is developing a 4500 tonnes per annum HPA processing plant in Johor, Malaysia. While still in the construction stages, Altech is gearing up to become one of the world’s leading suppliers of 99.99 per cent high purity alumina.
Already, the company is starting to deliver increased engagement with emerging participants in the flourishing European lithium-ion battery sector.
HPA is a high-value and critical product for producing synthetic sapphires. These are used to make LED lights, semiconductor wafers and scratch-resistant glass used in the electronics industry.
Additionally, HPA is becoming a known source for lithium-ion battery manufacturers to use for the coating on the battery’s separator.
Before Macquarie can facilitate the loan, it needs to satisfy all of its due diligence, various approvals and inter-creditor arrangements with senior lender, KfW IPEX-Bank.
Altech’s objective is also to link with HPA end-users that will commit to accept future volumes of its HPA product at pre-agreed or other pricing, as well as directly partner with it to develop the Malaysia project.
Altech has closed 4.11 per in the red with shares trading for seven cents each.
