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Altech Chemicals opens $4M raise for HPA plant

Industrial
ASX:ATC      MCAP $99.2M
05 December 2019 22:44 (AEST)

As production at its new high purity alumina plant progresses, Altech (ATC) is looking to raise $4 million from shareholders to help fund construction.

The new raise is in addition to the $1.8 million placement completed yesterday. 

Altech is inviting shareholders to buy up to $30,000 in new shares for 9.75 cents per share.

The Johor high purity alumina HPA plant is located in Malaysia. Upon completion, it is expected it will be capable of processing 4500 tonnes of the valuable commodity each year.

A grade of 4N HPA will be produced at the plant, meaning it is 99.99 per cent pure. The necessary feedstock will be supplied from Altech’s fully owned kaolin deposit in Western Australia.

Once up and running, the project is forecast to have a 30-year lifespan. The processing plant is expected to be completed within two years, with the first HPA output set for late 2021.

Altech’s Managing Director Iggy Tan detailed to shareholders the processing plants progress in the company’s release today.

“Currently at the four-hectare HPA site in Johor you can see a cleared, levelled and compacted site; the completed maintenance workshop; completed perimeter and internal retaining walls; a system of on-site water detention tanks’ and the commencement of construction of an electrical sub-station,” Iggy said.

It is noted that these achievements were all completed on and within budget.

After announcing its new financial raising effort to the Australian market, Altech’s share price is up 4.08 per cent and trading for 10 cents each at 1:47 pm AEDT. 

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