Altech Chemicals Ltd (ASX:ATC) Mezzanine Debt Technical Review Completed

Altech Chemicals Limited (Altech/the Company) (ASX:ATC) (FRA:A3Y) is pleased to advise that the technical review of its Malaysian high purity alumina (HPA) project that was initiated by the proposed mezzanine debt provider has now concluded. Advisian, the mezzanine lender's technical advisor, conducted an extensive and thorough review of the Company's HPA project when responding to specific questions from the proposed mezzanine debt provider which has taken six months. After extensive analysis, test work/data review and discussions with Altech and SMS group representatives, Advisian has concluded with a positive report on the project's technical aspects and project flowsheet. The report concludes that the Company has suitable proposed mitigation steps to manage the identified technical risk areas and the report is currently been reviewed by the mezzanine debt provider.

Highlights

- Final mezzanine lender's technical advisor report issued

- Extensive review of the HPA process including visit to SMS facility in Dusseldorf, Germany

- Positive findings with satisfactory risk management

- Mezzanine lender reviewing and to advise next steps

In May 2018, Altech announced that it had received an indicative non-binding mezzanine debt term sheet for US$90 million from a global investment bank. The term sheet is indicative, non-binding and remains subject to amongst other things; technical review; investment committee approval; agreement on binding terms; and various approvals (including from the senior lender, boards and regulatory authorities). The potential mezzanine debt provider appointed the lender's technical advisor and work started in August 2018. A draft technical advisor's report was issued in October 2018. The draft was updated in mid-November 2018 following the provision of additional technical information and the clarification various matters raised in the draft report. In early December 2018 the remaining outstanding technical matters from the updated draft report were addressed during a meeting in Dusseldorf, Germany attended by representatives from SMS group (the appointed EPC contractor for construction of the HPA plant); m.Plan International (technical advisor for the senior lender KfW IPEX-Bank); and Altech.

The final mezzanine lender's technical advisor report is positive and concludes that the Company has suitable proposed mitigation steps to manage the identified technical risk areas of its HPA project. Altech's HPA project has now been the subject of two detailed independent technical reviews, both of which have culminated in positive and satisfactory conclusions. The proposed mezzanine lender is reviewing technical advisor report thoroughly and will advise the Company of its next steps and timeline.


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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