Altech HPA project due diligence at an advanced stage

<p>Altech Chemicals Limited has provided 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.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/altechchemicals.png" alt="News" width="517" height="226" /></p> <p>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.</p> <p>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&rsquo;s HPA project, with an independent &ldquo;expert opinion&rdquo; report presented at the conclusion of the reviews for the benefit of the ECA.</p> <p>{googleAdsense}</p> <p>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.</p> <p>Commenting on the due diligence activities, Altech managing director Iggy Tan said, &ldquo;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.</p>