Altech Chemicals Ltd's (ASX:ATC,FRA:A3Y) shares have gained 11.5% to $0.145 in morning trade, as the company sets an export credit finance approval target date of 14 December 2017.
The company’s German engineering, procurement and construction (EPC) contractor SMS is targeting mid-October 2017 to finalise the EPC contract price for the construction of Altech’s Malaysian HPA plant.
The final EPC price and HPA plant design is required for the ECA cover application to determine the final amount of project debt and equity.
Iggy Tan, managing director, commented:
"The setting of the target date for the decision making of the SMS and KfW IPEX-Bank application for German government export credit project finance cover is the outcome of hard work by the various contributing teams focussed on securing project debt financing for the company’s HPA project.
"The successful conclusion of project due diligence and the no fatal flaws finding all bodes well for a positive ECA application assessment.
"Altech’s project team and our partners have an intense six week period ahead, as we work to finalise all project information ready for submission of the PwC expert opinion report and the application for ECA cover."