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Altech Chemicals bags $1.2M from professional and sophisticated investors

Altech Chemicals (ASX:ATC) has raised $1.2 million via a placement of shares to a variety of professional and sophisticated investors at $0.086 per share.

Funds raised will be applied to finalising the detailed design of the company's proposed high purity alumina (HPA) plant at Johor, Malaysia, for the completion of debt financing and for general working capital purposes.

Earlier in the week, Altech launched a Share Purchase Plan which allows existing shareholders to apply for up to $15,000 of new fully paid ordinary shares, at the same price as the placement.

Altech is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of artificial sapphire.

Key outcomes of the updated BFS include:

- Increased estimated pre-tax NPV9 of US$358 million (previously US$326 million).

- Higher Internal Rate of Return (NYSE:IRR) of 33% (previously 30%).

- Capex US$78.7 million (was US$76.9 million).

- Long-term sale price forecast unchanged at US$23,000/tonne for 99.99% (4N) product.

- Cost of goods sold slightly higher at US$9,074/tonne.

- EBITDA of US$55.7 million per annum at full production.

Well-connected

Altech has a cornerstone investor in Melewar IIC Limited.

Melewar's executive chairman, Royal Highness Prince Ya'acob Bin Tunku Tan Sri Abdullah, has previously said that he looked forward to assisting the company with its development plans.

Melewar is a diversified Malaysia industrial firm with steel, energy and engineering businesses, and is the second largest shareholder of the company.

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