Altech Completes $950,000 Meckering Land Sale and Secures Bond Guarantee
Altech Batteries has sold its non-core land in Meckering, Western Australia, for $950,000, boosting working capital while retaining mining rights. The sale also triggered a $500,000 bank guarantee tied to €2 million bearer bonds due in October.
- Meckering land sold for $950,000
- Mining lease M70/1334 retained under agreement
- Deutsche Balaton AG mortgage discharged
- $500,000 bank guarantee secured for bond repayment
- Bearer bonds due 31 October 2026
Asset Sale Provides Working Capital Boost
Altech Batteries Ltd (ASX:ATC) has completed the sale of its land in Meckering, Western Australia, for gross proceeds of $950,000. The Board classified the land as a non-core asset, and the sale proceeds will provide fresh working capital for the company. This divestment comes as Altech sharpens its focus on its core battery technology projects, including the CERENERGY® solid-state battery.
Mining Lease Retained with Industry-Standard Agreement
Despite selling the land, Altech has retained the mining lease M70/1334 associated with the site. The company entered into an Exploration, Mining, Access, Compensation and Option to Purchase Agreement with the new landowner. This agreement ensures that Altech, or any future owner of the mining lease, can continue mining operations uninterrupted. The terms are described as industry standard, preserving Altech’s strategic interests in the area.
Mortgage Discharged, Bank Guarantee Secured
The land had a mortgage held by major shareholder Deutsche Balaton AG. As part of the sale, Deutsche Balaton discharged this mortgage. In return, Altech granted Deutsche Balaton a $500,000 bank guarantee secured over an Altech bank account. This guarantee acts as partial security against €2 million bearer bonds Altech owes to Deutsche Balaton, which mature on 31 October 2026.
Repayment Plan Hinges on Malaysian Land Sale
Altech is currently seeking to sell land it owns in Johor, Malaysia, with the aim of repaying the bearer bonds by their due date. Should the bonds be repaid in full by 31 October, Deutsche Balaton will cancel the bank guarantee. If not, Deutsche Balaton can call on the $500,000 guarantee as partial repayment. This arrangement adds a layer of financial risk contingent on the success of the Malaysian land sale.
Strategic Focus on CERENERGY® Battery Commercialisation
This transaction fits into Altech’s broader strategy of concentrating on its CERENERGY® Sodium Chloride Solid State battery technology. The company is advancing plans to build a 120 MWh production facility in Saxony, Germany, to manufacture battery modules for grid storage. The sale of non-core assets like the Meckering land helps fund these ambitions while managing the company’s debt profile.
Bottom Line?
Altech’s sale of Meckering land injects working capital and secures partial bond repayment collateral, but the looming €2 million bond maturity and reliance on the Malaysian land sale remain key financial uncertainties.
Questions in the middle?
- Will Altech successfully sell its Johor land to repay the bearer bonds by October?
- How might the bank guarantee arrangement affect Altech’s liquidity if bond repayment is delayed?
- What impact will retaining the mining lease have on Altech’s future operational flexibility?
