Altech Chemicals Ltd (ASX:ATC) has been granted a trading halt by the ASX pending the release of information regarding a capital raising.
The company’s shares will remain halted until the earlier of the release of relevant information or the commencement of trading on Monday 9 July 2018.
READ: Altech Chemicals signs US$60 million stream finance facility for alumina project
Altech aims to be a vertically integrated producer of high-purity alumina (HPA) by feeding its proposed HPA plant in Malaysia using its kaolin mine in Western Australia.
Earlier this month, Altech received the official manufacturing licence from the Malaysia government for its proposed HPA plant in Johor, Malaysia.
During June, Altech also received a debt term sheet for up to US$120 million for the proposed HPA plant.
The indicative mezzanine debt sheet was received from an international investment bank and is in addition to the US$190 million senior debt package with KfW IPEX-Bank.
A key condition to be satisfied before drawing down on the US$190 million from German government-owned KfW IPEX-Bank is securing a balance of funds for the associated kaolin mine in Western Australia that will feed the HPA plant.
The company has been considering a number of options including mezzanine debt, taking on a partner, an equity raising and a royalty sale.