27/10/2017 - 10:50

Altech raises $17m from investors

27/10/2017 - 10:50

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Perth-based Altech Chemicals has received firm commitments for a $17 million capital raising to fund ongoing development of its high-purity alumina plant in Malaysia.

Perth-based Altech Chemicals has received firm commitments for a $17 million capital raising to fund ongoing development of its high-purity alumina (HPA) plant in Malaysia.

ASX-listed Altech said today it had raised $17.2 million through the placement of 122.9 million shares at 14 cents each, with German engineering firm SMS Group subscribing for about $5.1 million worth of the raising and an entity associated with director Tunuku Yaacob Khyra (Melewar Group) subscribing for $3 million.

SMS Group is also acting as engineering, procurement and construction contractor for the plant.

The price of the raising represented a 17 per cent discount to the company’s 15-day volume-weighted average price.

Proceeds from the placement will be used to continue the development of the company’s HPA project, including payments for land at Meckering in Western Australia, and Johor, Malaysia, detailed engineering design, working capital and general corporate purposes.

“The company very much welcomes the direct investment by SMS in Altech; it strongly demonstrates their commitment and confidence as EPC contractor to the project,” Altech managing director Iggy Tan said.

“The ongoing support of Melewar Group is equally important. The group has supported the company since 2015 and is a strong believer of our HPA project and the construction of the high-purity alumina plant in Malaysia.

“The placement leaves us well capitalised to complete the optimal funding arrangements for the HPA project in 2018.”

Shares in Altech were 18.9 per cent lower to 15 cents each at 10:30am.

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