Proactive Investors - Run By Investors For Investors

Altech Chemicals signs mezzanine finance mandate with Macquarie Bank

Petra Capital has a price target of 33 cents per share using a US$30,000 per tonne HPA price.
project funding concept
The spot price of US$40,000 per tonne increases the valuation to 63 cents per share

Altech Chemicals Ltd (ASX:ATC) (FRA:A3Y) has officially mandated Macquarie Bank as the preferred mezzanine lender for its proposed Malaysian high purity alumina (HPA) plant.

During May 2018 Altech received an indicative and non-binding mezzanine debt term sheet for a facility amount of up to US$90 million.

Macquarie subsequently appointed an independent technical advisor to undertake detailed project due diligence.

Altech and Macquarie have now reached agreement on mezzanine debt terms and executed a mandate letter, which appoints Macquarie as the exclusive mezzanine debt provider.

READ: Altech Chemicals sees increase in demand for HPA from lithium battery manufacturers

The agreement is subject to usual due diligence processes such as legal, market and technical.

Completion of the mezzanine facility by Macquarie is conditional upon its view of all due diligence outcomes and agreement with KfW-IPEX Bank on inter-creditor arrangements.

World’s first pure play HPA producer

Altech aims to become one of the world’s leading suppliers of 99.99% (4N) HPA, which will be produced at the proposed HPA plant in Malaysia.

The company aims to feed its HPA plant using its kaolin mine in Western Australia.

Using a spot price of US$40,000 per tonne and annual plant production of 4,500 tonnes, Altech will generate annual revenue of $180 million.

Model of the proposed HPA plant in Johor, Malaysia

View full ATC profile View Profile

Altech Chemicals Ltd Timeline

Related Articles

vein graphite
March 27 2019
The company is exploring and developing graphite mines in historic jurisdictions in Sri Lanka
project area
February 06 2019
Drilling to improve the JORC classification and extend the current resource will start this quarter.
1559213715_Gold-bar-plus-nugget.jpg
May 30 2019
Salazar's exploration efforts are supported by a consistent income stream

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use