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Mining

Altech Chemicals makes progress towards German project funding strategy

Altech is developing a high-purity alumina (HPA) project which involves building a HPA plant in Johor, Malaysia.

Altech Chemicals Ltd (ASX:ATC) has completed the 29% acquisition of Youbisheng Green Paper AG, re-named Altech Advanced Materials AG (AAM).

AAM has the right to acquire up to a 49% interest in Altech’s high purity alumina (HPA) project in Malaysia for US$100 million.

Altech has received the non-refundable fee of €500,000 from AAM as consideration for the sale of the right.

AAM is now in the process of raising funds through issues shares to make the US$100 million investment.

Roadshows are planned in Germany during September

Altech’s managing director Iggy Tan said: “We are very excited with the prospect of working with AAM on its European marketing campaign and implementing our German project equity strategy.

“As we have previously mentioned, Altech’s German equity strategy does not preclude the other joint venture partner initiatives that are also underway, nor does it replace the mezzanine debt initiative that is progressing with Macquarie Bank.”

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