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Altech Chemicals secures HPA plant site with final payment

The company has paid the final instalments totalling A$5.1 million for the plant site.
industrial site to host proposed HPA plant
The 4 hectare proposed HPA plant site is in the Malay state of Johor

Altech Chemicals Ltd (ASX:ATC) (FRA:A3Y) has made its final payment for the four hectares of industrial land to host its proposed high purity alumina (HPA) plant in Johor, Malaysia.

The site is within the Tanjung Langsat Industrial Complex and Altech expects to receive a deed of title from the state government for the land within the coming month.

The deed of title will be a 30-year lease with an option to renew for an additional 30 years.

READ: Altech Chemicals has key catalyst on the horizon as it trades at steep discount to broker valuations

The site is 40 kilometres to the south-east of Johor Bahru, the capital city of the state of Johor.

The city sits at the top of the Malay Peninsula located along the border with Singapore.

It is one of the fastest-growing cities in Malaysia after Kuala Lumpur.

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

Earlier this month, Altech 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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