Altech Batteries Ltd Stock Market Press Releases and Company Profile
Secures Partner to Fund Bulk Kaolin Study
Secures Partner to Fund Bulk Kaolin Study

Perth, Mar 4, 2015 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (googlechartASX:ATC) is pleased to advise that a Memorandum of Understanding (MOU) has been signed with Dana Shipping and Trading S.A. (Dana) to fund a scoping study to assess the commercial viability of mining and processing bulk kaolin from the Company's Meckering kaolin (or aluminous clay) deposit (Meckering Deposit). Bulk kaolin is predominantly used in the ceramics, paper, rubber and paint industries. The estimated cost of the study is approximately $100,000.

Highlights

- Altech secures partner to fund ~$100,000 bulk kaolin scoping study

- MOU provides a First Option over 10Mt of kaolin, for a $1m share placement and 2% gross sales royalty

- Second Option for a further 10Mt of kaolin, for an additional $1m share placement and 2% gross sales royalty

In return for conducting the study, Altech has granted Dana until 30 September 2015 to which it can exercise the exclusive right to mine up to 10Mt of kaolin from the Company's Meckering Deposit (First Option). On exercise of the option, Dana will be required to subscribe to $1,000,000 of Altech fully paid ordinary shares, to be priced at a 10% premium to the volume weighted average price of the shares as traded on the ASX in the 120 calendar days prior to the option exercise date, and pay the Company a 2% gross sales royalty on all future bulk kaolin sales.

In the event Dana exercises its First Option, Altech will grant Dana a second option (Second Option) to mine an additional 10Mt of kaolin from the Meckering Deposit. The Second Option is exercisable within 3 months from the date of the first sale of commercial bulk kaolin from the Meckering Deposit, and if the Second Option is exercised Dana must subscribe to an additional $1,000,000 of Altech fully paid ordinary shares, to be priced at a 10% premium to the volume weighted average price of the shares as traded on the ASX in the 120 calendar days prior to the option exercise date, and continue to pay a 2% gross sales royalty on all bulk kaolin sales.

Dana is an Athens-based global shipping company with a focus on dry cargo operations, working with a diversified suite of dry bulk commodities such as coal, iron ore, grains and minor bulks across all dry bulk vessel sizes.

Dana CEO Mr Patrick Hodgins commented, "Dana is pleased with the agreement that Altech has worked hard to finalise. We believe that our investigation will confirm the great potential in this project to export to markets aligned with this high grade kaolin clay and to supplement our shipping activities in the long term."

Commenting on the MOU, Altech managing director Iggy Tan explained, "The Company remains focused on its High Purity Alumina (HPA) project and the completion of the Bankable Feasibility Study (BFS) for the construction of a 4,000tpa HPA plant in Johor Bahru, Malaysia. However, we have always known that kaolin from the Company's

Meckering Deposit, with its high brightness and whiteness properties, is attractive as a bulk product for ceramics and paper producers, and with a 65Mt JORC resource, the Meckering Deposit is more than capable of accommodating the annual requirement of ~40,000 tonnes of kaolin for the Company's proposed HPA project, and the 10Mt-20Mt total bulk kaolin requirement for Dana, if it exercises its options.

"The structure of the Dana option agreement has the added advantage of providing the Company with development funds at a share price premium, if the options are exercised, which will be applied towards the current BFS", he concluded.

About the Meckering Deposit

The Company's 100%-owned Meckering Deposit covers approximately 1000km2 in area, and has an indicated and inferred kaolin mineral resource estimated at 65Mt @ 83.4% brightness (JORC 2004) (JORC Resource).

Historical exploration and development work was conducted at the Meckering Deposit by Swan River Kaolin (SRK) in the 1990's, which included open-pit mining to obtain bulk samples for bulk kaolin test work. In total 48 tonnes of material was mined from a test pit and beneficiated in SRK's pilot plant near Northam, Western Australia. Approximately 19 tonnes of bulk kaolin was successfully produced to the requisite commercial paper and ceramics quality with samples despatched to potential customers and end-users.

To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ATC-711725.pdf


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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