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Altech Chemicals receives manufacturing licence from Malaysian government

The licence is for a 4,500 tonnes per annum high purity alumina plant.
filing cabinet with file titled permits
The company continues its process of securing debt financing

Altech Chemicals Ltd (ASX:ATC) (FRA:A3Y) has received the official manufacturing licence from the Malaysia government for its proposed high purity alumina (HPA) plant in Johor, Malaysia.

The company aims to be a vertically integrated producer of HPA as it plans to feed its proposed HPA plant using its kaolin mine in Western Australia.

READ: Altech Chemicals secures HPA plant site with final payment

Recently, Altech paid the final instalments totalling A$5.1 million for the HPA plant site in Johor.

These final payments secured the site and the company will receive the deed of title (30 year lease, with the option to renew for an additional 30 years) from the Johor state government in due course.

READ: Altech Chemicals receives US$120 million debt term sheet

Last month, 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.

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