Alpha HPA (ASX:A4N) has reached Contractual Close for a $400m debt funding package to support Stage 2 of its HPA First Project in Gladstone, Queensland. The funding, structured as a limited-recourse project finance deal, is being jointly provided by the Northern Australia Infrastructure Facility (NAIF) and Export Finance Australia (EFA).
The debt package is split into a $320m Construction Facility and an $80m Cost Overrun Facility. The Construction Facility has a maturity of 11 years from Financial Close, while the Cost Overrun Facility matures in 5 years. The agreement follows Alpha's earlier announcement of these terms on 17 April 2024.
World's biggest
Alpha has already begun construction on what it says will be the world’s largest single-site facility for producing high-purity aluminium (HPA) materials. The finished refinery will occupy 10 hectares and be capable of producing over 10,000 tonnes of HPA products per year.
Stage 2 represents the commercial-scale deployment of Alpha’s proprietary solvent extraction and refining technology for producing 4N (99.99% purity) and 5N (99.999% purity) aluminium materials. These materials are used in high-technology markets, including semiconductors, lithium-ion batteries and LED lighting.
Alpha's Managing Director, Rimas Kairaitis, said, “We are delighted to receive comprehensive financing support from the Queensland and Federal Governments and to have reached this important milestone. We are thankful for the efforts of the EFA and NAIF teams and look forward to completion of Project construction".
Shares closed 4.22% higher at $0.86 yesterday.
