Altech Batteries Ltd Stock Market Press Releases and Company Profile
US$60 Million Stream Finance Term Sheet Signed
US$60 Million Stream Finance Term Sheet Signed

Perth, June 15, 2018 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (googlechartASX:ATC) (googlechartA3Y:FRA) is pleased to announce that it has signed an indicative non-binding term sheet for a US$ 60 million stream finance facility for its proposed high purity alumina (HPA) project (the Project), from a US based global alternative investment group.

Highlights

- US$60 million stream finance term sheet executed

- Structured alternate financing option

- Works in conjunction with off-take sales arrangement

- Global investment firm with US$ 4.5b under management

A stream finance facility is a structured alternative financing product whereby the facility provider agrees to advance a facility amount in exchange for a percentage of future gross sales. The facility term sheet that Altech has received contemplates a US$ 60 million advance, with funds able to be applied to the development, construction and working capital requirements of the Project. The facility will be structured to operate in conjunction with Altech's 10-year off-take sales arrangement with Mitsubishi Australia and for repayment over the life of the Project. The term sheet remains subject to additional due diligence, the agreement of binding terms and to various bank, regulatory and board approvals. The facility will also need to be acceptable to the senior debt provider (KfW IPEX-Bank) and any mezzanine debt provider. As is customary with these types of transactions, the terms remain confidential at this point in time.

Project Finance Status

On 2 February 2018 the Company announced that it had executed commitment and final terms for a US$ 190 million senior debt package with German government-owned KfW IPEX-Bank (see Note below). On 11 May 2018, the Company received an indicative non-binding mezzanine debt term sheet from a global investment bank equal to US$ 90 million. Combining the streaming facility with senior debt and mezzanine debt would provide total project finance of US $340 million, which the Company is considering, as summarised in Table 1 (see link below).

Altech managing director Iggy Tan said, "The Company is extremely pleased with the interest that is being shown from a variety of financiers in our HPA project, as is demonstrated by the term sheets received to date. We remain committed to pursuing an optimal financing structure for the Project, and will continue to keep shareholders informed of developments".

Note: Draw-down on the senior KfW IPEX-Bank debt is subject to the satisfaction of various conditions precedent, principal of which is securing a balance of funds - refer ASX announcement of 2 February 2018.

To view tables, please visit:
http://abnnewswire.net/lnk/4M05WB0Q


About Altech Batteries Ltd

Altech Chemical Ltd ASX:ATCAltech 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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Contact

Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com



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