Altech Chemicals Ltd (ASX:ATC) has banked $744,000 in a Share Purchase Plan and $2 million in total funds raised toward finalising the detailed design of Altech’s proposed high purity alumina (HPA) plant in Johor, Malaysia.
Altech is aiming to become a leading supplier of 99.99% (4N) high purity alumina (HPA) (Al2O3).
Altech is unique in that it uses a process to convert aluminous clay, sourced from its own quarry in Western Australia to HPA in a simple, highly cost effective process with operating costs a fraction of its larger, more established peers.
A recent Bankable Feasibility Study for the development of a 4,000 tonne per annum HPA processing plant at Johor provided robust financial outcomes from development of the project including a pre-tax NPV of US$358 million (previously US$326 million).
Aletch is following a conservative development strategy, using management’s extensive experience in building chemical plants, with the aim to be one of the world’s largest producers of HPA.
HPA is being used in a growing number of high tech applications and is set to have a CAGR of 19.7% to 2021.
Altech managing director, Mr Iggy Tan said, “the Company is most appreciative of the strong support shown by our shareholders for the SPP, which follows on from the support of predominantly new shareholders for the recently completed share placement.”
The company said it was in ongoing discussions with various other potential investors that were unable to meet the timeline to participate in the recent share placement, but remain interested to make an investment.
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