Altech Positive Pre-Assessment German Export Credit Finance
Perth, Aug 3, 2016 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (
ASX:ATC) is pleased to report that it has been officially advised by Euler Hermes Aktiengesellschaft (Hermes), the German Export Credit Agency (ECA), of a positive preassessment by the German Government inter-ministerial committee (IMC) and Hermes, of Altech's export credit project finance application for cursory review (refer ASX Announcement dated 22 March 2016 for details).
Highlights:
- Positive pre-assessment by German inter-ministerial committee
- Important milestone in the assessment process of Altech's ECA application
- Formal detailed due diligence of the project to commence
The positive pre-assessment of Altech's export credit application is an important milestone in the assessment process of the Company's high purity alumina (HPA) project and its ECA application. Whilst it is not legally binding and issued without prejudice to any decision to provide ECA cover, it reflects significant progress of the German Government approvals process.
The positive pre-assessment of the ECA application sets in motion a formal detailed due diligence of the project (including addressing specific requirements for Hermes), that will be undertaken by various consultants appointed by the Company's mandated German financier, KfW IPEX-Bank GmbH (KfW IPEX-Bank). The due diligence process culminates in an "expert opinion" report on the project to the IMC, and will form the basis of a decision on the approval to offer ECA cover by the IMC and Hermes. The Company will be working with KFW IPEX-Bank to select and appoint Lenders consultants to undertake the definitive technical, market and legal review of the project.
Altech's managing director, Mr Iggy Tan said that the positive pre-assessment by the IMC and Hermes is a very significant milestone in the Company's endeavours for funding its HPA project. "Obtaining this positive preassessment of the project from Hermes in such a short period of time is a real boost to the team. Another great effort by our Perth based management team, our German based financing consultants, KfW IPEX-Bank and our German EPC contractor M+W Group".
Hermes and ECA cover
Hermes is the appointed export credit agency that administers the export credit scheme for the German government. The scheme is an instrument for the promotion of German exports. It provides a cover to bank lenders to insure against the risk of an export loan. The scheme was identified as applicable to Altech's HPA project because the majority of the project's plant and equipment will be sourced from German and other European Union manufacturers and the appointed EPC contractor is Germany company M+W Group.
About Altech Batteries Ltd
Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.
The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.
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