Altech Chemicals Ltd raises $1.13M for detailed design phase of HPA Project

Altech Chemicals Limited is pleased to advise that it will raise a total of $1.130 million via share placement, for the commencement of detailed design work for the company’s high purity alumina (HPA) project and for corporate and general working capital purposes. The company will issue a total of 19,144,068 fully paid ordinary shares at $0.059 per share.

The majority of the placement ($1.0 million) will be to Malaysian cornerstone investor Melewar IIC Limited (Melewar). Melewar is a diversified Malaysia industrial firm with steel, energy and engineering businesses, and as a result of the placement Melewar will become the second largest shareholder of the company, holding approximately 12.9% of shares on issue. The company has invited Melewar to nominate a Malaysian based non-executive director to join the Altech Board, this will provide the company with invaluable insight into the Malaysian business and operating environments as it progresses the development of its HPA plant.

The $1.130 million share placement closely follows the company’s 29 June 2015 announcement of the results from its bankable feasibility study (BFS) for the construction and operation of a 4,000tpa HPA plant at Tanjung Langsat, Malaysia. The placement is a strong endorsement of the BFS and the project overall.

Company non-executive Mr Dan Tenardi has also nominated to participate in the placement ($100,000), his participation will be subject to shareholder approval. The balance of the placement ($29,500) is to a professional investor.

The placement will be made in two tranches. Commenting on the share placement, executive chairman of Melewar IIC Limited, Royal Highness Prince Ya’acob Bin Tunku Tan Sri Abdullah, said that Altech’s HPA project is a very exciting, and that he looked forward to assisting the company with its development plans.

Altech managing director, Iggy Tan welcomed Melewar as an Altech shareholder.