Altech Chemicals (ASX:ATC) will go to market for the first time since listing on the ASX in 2010 as it seeks to complete a Bankable Feasibility Study (BFS) for the construction of a High Purity Alumina (HPA) processing plant in Johor Bahru, Malaysia.

A total of $2.69 million is sought, via an entitlement offer of 1 new share at $0.10 for every 4 shares as Altech looks to transition to a producer of High Purity Alumina.

There is 1 free attaching listed option with an exercise price $0.10, expiring of 15 Dec 2015 that will be offered to shareholders and investors in the non renounceable entitlement issue.

The Company’s cash position was $1.3 million on hand with an R&D related rebate of $0.5-$0.6 million in the offing.

High purity alumina is a major source material for scratch-resistant artificial sapphire glass. Sapphire glass is used to produce a range of high-performance electronic applications such as LEDs, semi-conductors and smartphones and tablet devices.

The BFS will seek to provide a platform to develop a full-scale 3,000tpa HPA production facility.

Altech's process employs conventional and proven “off-the-shelf” plant and technology to extract HPA from its low-cost and low-impurity aluminous clay feedstock, which results in lower operating costs.

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