viewAltech Chemicals Ltd

Altech Chemicals signs mezzanine finance mandate with Macquarie Bank

Petra Capital has a price target of 33 cents per share using a US$30,000 per tonne HPA price.

project funding concept
The spot price of US$40,000 per tonne increases the valuation to 63 cents per share

Altech Chemicals Ltd (ASX:ATC) (FRA:A3Y) has officially mandated Macquarie Bank as the preferred mezzanine lender for its proposed Malaysian high purity alumina (HPA) plant.

During May 2018 Altech received an indicative and non-binding mezzanine debt term sheet for a facility amount of up to US$90 million.

Macquarie subsequently appointed an independent technical advisor to undertake detailed project due diligence.

Altech and Macquarie have now reached agreement on mezzanine debt terms and executed a mandate letter, which appoints Macquarie as the exclusive mezzanine debt provider.

READ: Altech Chemicals sees increase in demand for HPA from lithium battery manufacturers

The agreement is subject to usual due diligence processes such as legal, market and technical.

Completion of the mezzanine facility by Macquarie is conditional upon its view of all due diligence outcomes and agreement with KfW-IPEX Bank on inter-creditor arrangements.

World’s first pure play HPA producer

Altech aims to become one of the world’s leading suppliers of 99.99% (4N) HPA, which will be produced at the proposed HPA plant in Malaysia.

The company aims to feed its HPA plant using its kaolin mine in Western Australia.

Using a spot price of US$40,000 per tonne and annual plant production of 4,500 tonnes, Altech will generate annual revenue of $180 million.

Model of the proposed HPA plant in Johor, Malaysia

Quick facts: Altech Chemicals Ltd

Price: 0.048 AUD

Market: ASX
Market Cap: $41.99 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Altech Chemicals Ltd named herein, including the promotion by the Company of Altech Chemicals Ltd in any Content on the Site, the Company...



Altech Chemicals moves to secure site for second high purity alumina plant...

Altech Chemicals Limited's (ASX:ATC) (FRA:A3Y) Iggy Tan speaks to Proactive's Andrew Scott after announcing a purchase agreement option for a 10-hectare industrial site in the Saxony region of Germany as the company considers constructing a second high purity alumina (HPA) plant. The company...

3 weeks, 2 days ago

2 min read