Altech Batteries Ltd (ALTHF) Sale of Meckering Land
Altech Batteries Ltd (ASX:ATC) (FRA:A3Y) (OTCMKTS:ALTHF) advises that settlement has concluded in relation to the sale of Altech Meckering Pty Ltd's land held in Meckering Western Australia. Gross proceeds of $950,000 were received. The land was deemed a non-core asset by the Board of Directors, with proceeds providing working capital for the group.
Highlights
- Altech sells its land owned in Meckering, Western Australia
- Gross proceeds from sale of $950,000
- Altech retains Mining Lease for M70/1334
- Exploration, Mining, Access, Compensation and Option to Purchase Agreement in relation to the land and M70/1334 executed with new owner
- Land superfluous to requirements and sale proceeds provides fresh working capital
Altech has retained the rights to M70/1334 and as part of the sale, has entered into an Exploration, Mining, Access, Compensation and Option to Purchase Agreement ("Agreement") in relation to the mining lease. The Agreement is on terms and conditions considered industry standard in relation to these types of agreements. Importantly, any future mining of the mining lease will be able to continue pursuant to the Agreement, and if the mining lease is sold, any future owner will be able to operate a mining operation pursuant to the Agreement.
The land had a mortgage held by major shareholder Deutsche Balaton AG. As part of the sale, Deutsche Balaton AG discharged the mortgage and in return, was granted a bank Guarantee by Altech over a bank account held by Altech in the amount of $500,000. The Guarantee provides Deutsche Balaton AG security in relation to the EUR2,000,000 bearer bonds that Altech owes to Deutsche Balaton AG. The bearer bonds are due for repayment on 31 October 2026. Altech is endeavoring to sell its land held in Johor, Malaysia in order to repay the bearer bonds. Should the bearer bonds not be repaid by the due date, Deutsche Balaton AG has the right, pursuant to the Guarantee, to call on the $500,000 as partial repayment of the bearer bonds. Should Altech repay the bearer bonds in full by 31 October 2026, Deutsche Balaton AG will be obliged to withdraw and cancel the Guarantee.
Daniel Raihani Managing Director Altech Batteries Limited Tel: +61-8-6168-1555 Email: info@altechgroup.com Martin Stein Chief Financial Officer Altech Batteries Limited Tel: +61-8-6168-1555 Email: info@altechgroup.com
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