Extension of Exercise Date, Bulk Kaolin Option
Perth, Oct 1, 2015 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (
ASX:ATC) advises shareholders that it has reached agreement with Dana Shipping and Trading S.A. (Dana), to extend the date by which Dana can elect to exercise its exclusive option to mine up to 10Mt of bulk kaolin from the Company's Meckering kaolin deposit (Meckering Deposit) from 30 September 2015 to 15 October 2015.
Highlights
- Exercise date for option to mine 10Mt of bulk kaolin extended to 15 October 2015
- Bulk kaolin scoping study completed
Background
On 4 March 2015, the Company announced that it had reached agreement with Dana to fund a scoping study to assess the commercial viability of mining and processing bulk kaolin from the Meckering Deposit. Bulk kaolin is predominantly used in the ceramics, paper, rubber and paint industries. The cost of the study was estimated at $100,000 and Dana has advised the Company that the Scoping Study has now been completed.
In return for conducting the study, Altech originally granted Dana until 30 September 2015 for it to exercise an exclusive right to mine up to 10Mt of Kaolin from the Meckering Deposit (First Option), this date is now extended to 15 October 2015. 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 the 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 commercial sale of 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.
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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