Altech Chemicals Ltd (ASX:ATC) has now appointed due diligence consultants to undertake the definitive technical, market and legal review on the high purity alumina (HPA) project in Western Australia.
The appointment was made on behalf of the proposed financier, Germany’s government-owned KfW IPEX-Bank supported by German export credit agency Euler Hermes.
Due diligence activities have now progressed to the next stage and site visits were conducted last week by the various consultants.
Visits include to the company’s Meckering kaolin deposit; the HPA pilot plant site at Simulus Engineering’s Perth testing facility and to the proposed HPA plant site at the Tanjung Langsat Industrial Complex, Johor, Malaysia.
Iggy Tan, managing director for Altech, commented:
“The commencement of the lenders detailed project due diligence is a significant advance towards finalising project financing.
"The site visits last week follow an extremely constructive due diligence initiation meeting in Stuttgart, Germany during which all participants were updated on the status of project detailed design and funding plans.
"The site visits enabled the consultants to quickly familiarise themselves with the project, the company and provided for specific queries to be answered in a most effective manner.”
Altech recently updated its kaolin resource at the wholly-owned HPA project in Meckering, Western Australia.
The updated Resource measures 11 million tonnes of kaolin clay containing 45% minus 45 micron clay with a brightness of 82.7%.
This resource will feed the proposed HPA plant in Malaysia for over 250 years.
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