- Alpha HPA (A4N) has accepted $7 million in firm commitments from sophisticated investors to fund the company’s HPA First project
- The project will use a proprietary solvent extraction and refining technology to produce high purity alumina from a range of feedstocks instead of specialising in one type, making it unique in the market
- The money raised in the placement will go towards market outreach, production costs, financing and permitting for the project
- While it’s still a long road to first production, the money raised in the recent placement is a good step along the way
- Alpha HPA is trading grey at 17 cents
Materials producer Alpha HPA (A4N) has accepted $7 million in firm commitments from sophisticated investors to fund the company’s HPA First project.
What is HPA First?
High purity alumina (HPA) can be produced in a number of ways from various industrial feedstocks.
Alpha’s HPA First project will use a proprietary solvent extraction and refining technology to produce HPA from a range of feedstocks instead of specialising in one type, making it unique in the market.
This versatility will offer great support as more suppliers and off-takers seek to enter the burgeoning HPA market.
Steps to production
While an updated pre-feasibility study was issued in March last year, there’s still much work to do on the way to first production.
The money raised in the placement will go towards three main development areas.
Firstly, some money will be used for HPA production for the purposes of market outreach.
Alpha has already received test orders from two potential offtakers, and is also scaling up production to be able to fill larger orders from the HPA First Pilot Plant.
Secondly, Alpha is currently involved in discussions with advisors and lenders to get project financing underway.
The HPA First project is estimated to cost $198 million to get up and running.
Thirdly, permitting work is also underway, particularly to guarantee the smooth operation of transport between the HPA First facility and Orica project.
While it’s still a long road to first production, the money raised in the recent placement is a good step along the way.
Alpha HPA is trading grey at 17 cents as at 3:10 pm AEST.