Australian innovator Altech Chemicals Ltd. announced yesterday that a recent share purchase program (SPP) raised A$4.3 million, bringing the firm that much closer to putting its plans for the commercial production of high-purity alumina (HPA) into effect.
Per the company, the late SPP involved existing shareholders who purchased the shares at A$0.165 per share. The program closed last week at close of business on Friday.
Iggy Tan, Altech’s managing director, expressed his company’s happiness with the success of the SPP.
“The Company is extremely pleased with the number of applications for new shares that it received from shareholders under the SPP. In excess of 550 shareholders, representing approximately 20% of all shareholders, participated which is an exceptional outcome. Project momentum is now growing rapidly, the site for our high purity alumina (HPA) plant has now been cleared and the stage-1 construction agreement was recently signed, this will see works in Johor commence shortly.”
The successful SPP comes two weeks after Altech executed a stage-1 construction contract with Germany’s SMS group GmbH for the construction of its planned plant in Johor. The cost of stage 1 is expected to be A$10 million, which the firm expects to be drawn from the A$280 million lump-sum fixed-price HPA plant EPC contract between Altech and SMS.
Altech Chemicals is based in Subiaco, Western Australia and is attempting to implement a marketable process for delivering 99.99% (4N) HPA using conventional equipment at a lower production cost than methods currently available. It plans to construct a 4,500 metric ton per annum HPA plant at Tanjung Langsat Industrial Complex, Johor, Malaysia that will use kaolin clay from a company-owned mine in Meckering, Western Australia. The firm is fast-tracking HPA production due to an agreement with Mitsubishi for 100% of its proposed HPA production for ten years. At present, Altech intends to commence project development later this year.