Altech Batteries Ltd (ASX:ATC, OTC:ALTHF, FRA:A3Y) has completed the sale of its landholding at Meckering in Western Australia, generating gross proceeds of $950,000 and adding fresh working capital to the group.
The land, held through Altech Meckering Pty Ltd, had been deemed non-core by the board, with settlement now concluded.
Importantly, Altech has retained rights to mining lease M70/1334, ensuring the company maintains exposure to the asset while freeing up capital from land considered surplus to requirements.
Mining rights retained
As part of the transaction, Altech has entered into an Exploration, Mining, Access, Compensation and Option to Purchase Agreement with the new landowner.
The agreement relates to both the land and mining lease M70/1334 and is designed to preserve future mining access.
Any future mining of the lease would be able to continue under the agreement, while any future owner of the mining lease would also be able to operate a mining operation pursuant to the agreed terms.
Mortgage discharged
The land had been subject to a mortgage held by major shareholder Deutsche Balaton AG.
As part of the sale, Deutsche Balaton AG discharged the mortgage and was granted a bank guarantee by Altech over a bank account in the amount of $500,000.
The guarantee provides Deutsche Balaton AG with security in relation to €2 million in bearer bonds owed by Altech, which are due for repayment on October 31, 2026.
Altech is also attempting to sell its land in Johor, Malaysia, to repay the bearer bonds. If the bonds are not repaid by the due date, Deutsche Balaton AG has the right to call on the $500,000 guarantee as partial repayment. If the bonds are repaid in full by the due date, the guarantee must be withdrawn and cancelled.
About Altech Batteries
Altech Batteries is a specialty battery technology company focused on commercialising next-generation energy storage technologies.
The company has a joint venture agreement with German government battery institute Fraunhofer IKTS to commercialise CERENERGY® Sodium Chloride Solid State battery technology.
CERENERGY® batteries are positioned as an alternative to lithium-ion batteries, with the technology described as fire and explosion-proof, lithium-free, cobalt-free, graphite-free and copper-free.
The joint venture plans to construct a 120 MWh production facility on Altech’s land in Saxony, Germany, to produce CERENERGY® battery modules for grid storage applications.