Altech Chemicals Ltd's (ASX:ATC) cash position has received a boost after the company received $1.75 million from the sale of its Meckering exploration licence E70/3923 to Dana Shipping and Trading S.A. (Dana).
E70/3923 was surplus to the company's feedstock requirements for its proposed Malaysian HPA plant.
Feedstock for the plant will be sourced from granted mining lease M70/1334, which contains an estimated ~11 million tonnes of kaolin mineral resources, representing in excess of 250 years of supply for the proposed plant.
The funds will be applied towards finalising the detailed design for the HPA plant, and for general working capital purposes.
Kaolin mining lease
Earlier in the month Altech was granted its kaolin mining lease, which moves the company closer to mine development.
The next steps are to submit a mining proposal and mine closure plan.
Altech is aiming to become one of the world's leading suppliers of 99.99% HPA, which is a high-value, high margin and highly demanded product.
HPA is the critical ingredient required for the production of artificial sapphire.
The next key catalyst for Altech is project financing for the proposed Malaysian HPA plant.
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