Altech Chemicals Ltd (ASX:ATC) (FRA:A3Y) has been successful in securing senior project debt finance of US$190 million from German government-owned KfW IPEX-Bank as senior lender, and has mandated Macquarie Bank (Macquarie) as the preferred mezzanine lender.

The indicative and non-binding mezzanine debt term sheet (currently progressing through due diligence) is for a facility amount of up to US$90 million and throughout this year the Company has focussed on managing the due diligence process. Macquarie appointed an independent technical advisor, Worley Parson, to conduct the project technical review which was completed over a period of 6 months and concluded with a positive report on the project and processing flowsheet.

Following the technical review Macquarie appointed CRU, a London commodities research house, to conduct a HPA market review. This detailed investigation into the HPA market took 3 months and the results showed significant growth expected for HPA demand and a near term supply deficit.

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About Altech Chemicals Ltd

Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia.

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.



Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: +61-8-6168-1555

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: +49-69-175-548320

Link: Security Purchase Plan

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