Altech Chemicals (ASX:ATC, FRA:A3Y) has completed a $2 million share placement to existing cornerstone investor, MAA Group Bhd (KLSE:MAA).
The placement shares will be issued at $0.14, which represents an 8% premium to the 12 April 2017 closing price.
Funds raised will be applied to the completion of detailed design and engineering of Altech’s proposed Malaysian high purity alumina (HPA) plant.
The placement shares to MAA Group will be subject to the approval of Altech shareholders.
MAA Group is a Malaysian publicly listed insurance, investment, credit and finance group and its chairman and major shareholder Tunku Yaacob Khyra sits on Altech’s board as a non-executive director.
Recent dual listing and mining approval
Altech recently dual listed under the ticker A3Y on Germany’s Frankfurt Stock Exchange.
The dual listing supports Altech’s strategy to broaden its European investor base, particularly in Germany where there is growing interest in the company’s HPA project.
The Frankfurt Stock Exchange is the world’s third largest exchange-trading market as measured by trading volume, behind the New York Stock Exchange and NASDAQ.
The dual listing followed the recent approval of Altech’s mining proposal and the associated mine closure plan for its Meckering kaolin deposit located in Western Australia.
Altech is aiming to become one of the world's leading suppliers of 99.99% HPA through construction and operation of the proposed HPA plant in Malaysia.
The plan is for the HPA plant to process raw kaolin mined and shipped from the company’s 100% owned Meckering kaolin deposit located in Western Australia.