Altech Chemicals Ltd (ASX:ATC) has resumed normal trading on the ASX this morning and has confirmed that the due diligence process on its high purity alumina (HPA) plant in Malaysia has commenced and is progressing well.
The company is progressing a US$120 million mezzanine debt facility term sheet and a US$60 steam finance facility term sheet for its project.
Two global investment powerhouses as counterparties
Altech has confirmed that the counterparty to the mezzanine debt term sheet is a global investment bank with more than A$400 billion in assets under management.
The counterparty to the stream finance term sheet is a global alternative investment management firm with $4.5 billion under management.
Altech will continue to provide updates on the progress of this due diligence process.
Earlier this week, Altech requested that its securities be placed in a trading halt until an update could be provided regarding the progress of its funding facilities.
The company has now confirmed that its counterparties have appointed an independent technical consultant.
A due diligence kick-off meeting was held in Frankfurt, Germany on 27 July 2018.
The meeting was attended by Altech management, technical consultants and representatives from the counterparties as well as m.Plan (KfW IPEX-Bank GmbH technical consultant) and SMS group (Altech’s appointed EPC contractor).
The due diligence work will take into consideration the extensive data base of prior due diligence work commissioned by the senior lender German government-owned KfW IPEX-Bank GmbH.
Altech is starting stage I construction of its high purity alumina (HPA) plant in Johor, Malaysia, following a ground-breaking ceremony earlier this month.
First construction step is an 8-week geotechnical drilling and ground survey program with the objective of confirming ground conditions and optimising proposed foundation piling.