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.
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.
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.