ATC- Altech HPA

[JBmurc]

ALTECH DEBT DUE DILIGENCE
AT AN ADVANCED STAGE
Highlights
• Debt due diligence at an advanced stage
• Confirmatory pilot plant test work in South Africa, Australia and Germany
• HPA market study completed
• Technical due diligence at an advanced stage
• Permitting in Malaysia and Australia progressed
Altech Chemicals Limited (Altech/the Company) (ASX: ATC) is pleased to provide an update on the due
diligence activities associated with the financing of its proposed high purity alumina (HPA) project. The various
independent reviews and associated confirmatory pilot plant test work are now well advanced and nearing
completion.
Altech has been working exclusively with German KfW IPEX-Bank on project finance structuring. The
Company is currently targeting US$70 million of project debt; the majority of which is aimed to be subject to
German export credit cover (ECA), typically offered at attractive interest rates and terms; the remainder is
expected to be available on normal commercial loan terms.
On 10 August 2016 the appointment of due diligence consultants by Altech and KfW IPEX-Bank was
announced. The consultants are engaged to undertake definitive technical, market and legal reviews of the
Company’s HPA project, with an independent “expert opinion” report presented at the conclusion of the
reviews for the benefit of the ECA.
The due diligence consultants completed site visits to Meckering, Fremantle and Perth, Western Australia and
to Johor, Malaysia in early August 2016 and their respective initial reviews did not identify any major flaws in
the HPA project. However various pilot plant confirmatory test work programs were requested and detailed
audits initiated accordingly. The test work programs and audits are now well advanced.
Commenting on the due diligence activities, Altech managing director Iggy Tan said, “The last five months
have been extremely busy for the Company as we worked with the various due diligence consultants to
complete confirmatory pilot plant test work and respond to a large number of detailed information requests.