Altech Batteries Ltd Stock Market Press Releases and Company Profile
Raises $1.13M for Detailed Design of HPA Project
Raises $1.13M for Detailed Design of HPA Project

Perth, Aug 10, 2015 AEST (ABN Newswire) - Altech Chemicals Limited (googlechartASX:ATC) is pleased to advise that it will raise a total of $1.130 million via share placement, for the commencement of detailed design work for the Company's high purity alumina (HPA) project and for corporate and general working capital purposes. The Company will issue a total of 19,144,068 fully paid ordinary shares at $0.059 per share, representing a ~10% discount to the 5 day VWAP of the Company's shares as traded on the ASX on the date on which the placement price was set.

Highlights:

- $1.13 million raised for detailed design phase

- $1.0 million placed with strategic Malaysian cornerstone investor (Melewar)

- Melewar is a diversified Malaysian industrial firm with steel, energy and engineering interests

- Proceeds used to commence detailed design, corporate costs and working capital

The majority of the placement ($1.0 million) will be to Malaysian cornerstone investor Melewar IIC Limited (Melewar). Melewar is a diversified Malaysia industrial firm with steel, energy and engineering businesses, and as a result of the placement Melewar will become the second largest shareholder of the Company, holding approximately 12.9% of shares on issue. The Company has invited Melewar to nominate a Malaysian based non-executive director to join the Altech Board, this will provide the Company with invaluable insight into the Malaysian business and operating environments as it progresses the development of its HPA plant.

The $1.130 million share placement closely follows the Company's 29 June 2015 announcement of the results from its bankable feasibility study (BFS) for the construction and operation of a 4,000tpa HPA plant at Tanjung Langsat, Malaysia. The placement is a strong endorsement of the BFS and the project overall.

Company non-executive Mr Dan Tenardi has also nominated to participate in the placement ($100,000), his participation will be subject to shareholder approval. The balance of the placement ($29,500) is to a professional investor.

The placement will be made in two tranches. An initial tranche of 8,974,576 shares ($0.530 million) will be issued in accordance with the Company's placement capacity under ASX Listing Rules 7.1 and 7.1A; 8,474,576 shares to Melewar and 500,000 shares to the professional investor. A second tranche of 10,169,492 shares ($0.600 million) will be issued subject to shareholder approval, which will be sought at the Company's Annual General Meeting planned for Friday 30 October 2015; 8,474,577 shares to Melewar ($0.500 million) and 1,694,915 shares ($0.100 million) to Mr Tenardi.

Commenting on the share placement, executive chairman of Melewar IIC Limited, Royal Highness Prince Ya'acob Bin Tunku Tan Sri Abdullah, said that Altech's HPA project is a very exciting, and that he looked forward to assisting the Company with its development plans: "The potential for Altech to be one of the worlds leading producers of high purity alumina at a low cost, with its plant in Malaysia is what attracted our attention and has culminated in this investment. The rapid growth in demand for sapphire based products from LED lighting manufacturers, and the electronics and smart phone sectors is compelling. Altech management team, led by Mr Iggy Tan with his proven track record of developing these type of projects, was another key consideration."

Altech managing director, Iggy Tan welcomed Melewar as an Altech shareholder. Mr Tan said that Melewar was a high calibre Malaysian company: "Royal Highness Prince Ya'acob Bin Tunku Tan Sri Abdullah is executive chairman and part owner of the Melewar Industrial Group, a diversified Malaysian industrial firm operating successful iron and steel, energy and engineering businesses in Malaysia. The Prince is a very successful businessman in his own right and is the grandson of the first King of Malaysia. We are pleased to have such a great partner to help develop our project in Malaysia."

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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