Security Purchase Plan
Security Purchase Plan
Perth, Dec 6, 2019 AEST (ABN Newswire) - Altech Chemicals Ltd (ASX:ATC) (FRA:A3Y) has been successful in securing senior project debt finance of US$190 million from German government-owned KfW IPEX-Bank as senior lender, and has mandated Macquarie Bank (Macquarie) as the preferred mezzanine lender.

The indicative and non-binding mezzanine debt term sheet (currently progressing through due diligence) is for a facility amount of up to US$90 million and throughout this year the Company has focussed on managing the due diligence process. Macquarie appointed an independent technical advisor, Worley Parson, to conduct the project technical review which was completed over a period of 6 months and concluded with a positive report on the project and processing flowsheet.

Following the technical review Macquarie appointed CRU, a London commodities research house, to conduct a HPA market review. This detailed investigation into the HPA market took 3 months and the results showed significant growth expected for HPA demand and a near term supply deficit.

To view the Purchase Plan, please visit:
https://abnnewswire.net/lnk/Y779YHS7


About Altech Chemicals Ltd

Altech Chemical Ltd ASX:ATCAltech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.

    


Contact

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

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555
Email: info@altechchemicals.com

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: +49-69-175-548320
Email: hoffmann@soarfinancial.com



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