Australian innovator Altech Chemicals Ltd. announced yesterday the launch of two share offerings that are expected to raise A$20 million to complete engineering and begin construction of the firm’s high-purity alumina (HPA) plant in Johor, Malaysia.
Per the company’s announcement, Altech has received around A$17 million in share placements for an offering of shares at A$0.165 per share, which is a 13.2-percent discount from the share’s trading price at the close of trading on July 4.
In addition to subscriptions already made, Altech is offering a share purchase plan (SPP) that will allow existing shareholders to purchase up to A$15,000 in new shares under the terms and prices stated above. Altech estimates the SPP will raise an additional A$3 million in capital.
Iggy Tan, Altech’s managing director, expressed his satisfaction with the funds raised, noting that the infusion of capital will enable the company to begin construction shortly.
“The Company is extremely pleased with the support that it has received for the share placement. The placement was well supported by existing shareholders and we are delighted to welcome a number of high quality new investors onto the share register
“The funds that have been raised will allow Altech to commence HPA plant construction in parallel to finalising project financing. The success of any project depends on maintaining development momentum and we have achieved that in the last four years.”
Per the firm, construction of the HPA plant will commence by the end of September, beginning with earthworks, foundation piling, construction of retaining walls, drainage works, and a construction workshop.
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.