Mezzanine Loan Facility Update
Perth, Mar 5, 2020 AEST (ABN Newswire) - Altech Chemicals Limited (
ASX:ATC) (A3Y:FRA) is pleased to provide an update on the progress on its proposed US$90 million mezzanine loan facility.
Altech continues to work with its preferred mezzanine lender Macquarie Bank (Macquarie) to secure a US$90 million mezzanine loan facility. An update meeting was recently held with Macquarie in London, where when pressed by Altech the Macquarie team reaffirmed its continued interest in providing the facility - especially given the recent increased profile of planned lithium-ion battery plant construction in Europe, and a stated industry preference for securing long-term battery materials supply.
Finalising a facility remains subject to Macquarie satisfying all of its due diligence, various internal approvals and inter-creditor arrangements with senior lender KfW IPEX-Bank. Macquarie has progressed discussions with the bank and its legal counsel (Freshfields), regarding access to the previous legal due diligence work and updates to this work.
Whilst Altech has a ten-year offtake sales arrangement with Mitsubishi Corporation's Australian subsidiary, Mitsubishi Australia Ltd (Mitsubishi), Macquarie stressed to Altech the importance of it selling a proportion of its planned HPA production to an end user at fixed product prices to demonstrate some pricing transparency in an otherwise opaque market.
The recent posting of Altech alternate director Mr Uwe Ahrens to Germany (refer ASX Announcement 27 February 2020) is already starting to deliver increased engagement with emerging participants in the bourgeoning European lithium-ion battery sector. Response to the promotion of Altech's HPA project and its 99.99% (4N) HPA product has been positive. The Company's objective is to link with one or more HPA end-users that appreciate the advantage of a current commitment to accept future volumes of its 4N HPA product at pre-agreed or other transparent pricing, and/or to directly partner with Altech for the development of its HPA project.
About Altech Batteries Ltd
Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.
The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.
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