Almonty Industries Inc. (ASX:AII) (TSX:AII) (OTCQX:ALMTF)
(FWB:ALI.F):
Dear Investors,
On behalf of global leading tungsten producer and developer,
Almonty Industries Inc. (“Almonty” or the “Company”) (ASX:AII /
TSX: AII / OTCQX: ALMTF / Frankfurt: ALI.F), I am very pleased to
announce the successful capital raising of A$15.25m and a dual
listing on the ASX on 2nd August 2021.
On behalf of the Board of Directors, I would like to welcome new
shareholders to the Almonty share register as we continue
construction of the world’s largest tungsten mine outside of China,
the Sangdong Tungsten Mine in South Korea (“Sangdong”). Once
Sangdong is in production from Q4 2022, Almonty is expected to
produce approximately 30% of all tungsten outside of China and
approximately 7-10% of global supply.
The ASX IPO is a key milestone for Almonty for several
reasons:
- The receipt of >A$15m in new equity is the final condition
precedent in order for the Company to drawdown on the US$75.1
million debt package arranged with the German state bank KfW IPEX.
The loan has been agreed on compelling terms for Almonty equity
holders with all-in costs expected to be circa 2 – 3% per annum.
Almonty is now fully funded for construction of Sangdong.
- The ASX listing has granted Almonty access to the deep pool of
experienced resource investors found on the ASX which is expected
to improve liquidity for the Company.
Funds raised from the IPO will be applied towards planned
capital expenditures for the construction of Sangdong, other
expenditures relating to Sangdong, refurbishment prior to capital
expenditure and for general corporate and administrative expenses
and payables reduction. This will sit alongside OeKB
(Österreichische Kontrollbank) who has approved the issuance of the
final ECA cover for the Sangdong project financing on June 18th,
2021 to underpin the US$75.1m loan from KfW-IPEX Bank which was
executed in December, 2020.
I am pleased to note that Almonty has achieved various
construction milestones to date at site. This includes demolition
of the old workings, including the old Ammonium Para Tungstate
(APT) plant, commencement of the process of land purification and
levelling, commencement of the road and drainage diversion,
completion of both ore and waste portals, commencement of
underground mine development, completion of construction of the
administration offices, installation and commissioning of a full
testing laboratory, commencement of the civil engineering planning
work for surface buildings, ordering and paying the deposits for
the long lead time milling equipment, commissioning the onsite
Batch plant which is already achieving a rebound rate of 6% and
introducing a number of community programs in line with our ESG
program. This work was all undertaken prior to financial close to
ensure an on-time commissioning.
The Company would also like to announce the appointment of Piers
Lewis as our co-company secretary based in Australia.
Almonty is pleased and proud to have the support of the local
South Korean government which along with tax and construction
subsidies and tax concessions, has assisted and funded development
of the necessary infrastructure at and around Sangdong. To date,
the local Government has paved a new asphalt road to the mine gate,
brought potable water to the site, reconditioned all drainage
leading to site, provided numerous cash subsidies for equipment
purchased, is currently installing a new 22.5 km power line to
site, has given Almonty unfettered access to the government
laboratories at the Korea Institute of Geoscience and Mineral
Resources for our ongoing research and has built a scale
functioning pilot plant at the site (approximately 1/16th in size).
To date, over A$7m in support of the development of Sangdong has
been expended by the South Korean government and this support will
continue throughout the build and past commissioning.
As China produces approximately 83% of the world’s supply of
tungsten, it is a lucrative, albeit difficult, market to operate
in. As such, we have worked very hard to safeguard the Company’s
future. In addition to assembling strong and unrivalled in-house
operational and tungsten market expertise, we have executed a
15-year offtake with USA based Plansee GTP, global leaders in
production of tungsten powders and high-performance end products
from tungsten and molybdenum which includes an unprecedented floor
price, guaranteeing a minimum of C$750m of revenue over the 15-year
term.
Finally, in striving to become a globally significant mining
company, it is critical that we continue our strong focus on ESG.
All new facilities at site are designed and will be built in
compliance with IFC/ Equatorial Principal standards
(https://equator-principles.com/). Additionally, Sangdong power
will be sourced from 100% renewable energy as the Company targets
carbon neutrality.
About Almonty
The principal business of Toronto, Canada-based Almonty
Industries Inc. is the mining, processing and shipping of tungsten
concentrate from its Los Santos Mine in western Spain and its
Panasqueira mine in Portugal as well as the development of its
Sangdong tungsten mine in Gangwon Province, South Korea and the
development of the Valtreixal tin/tungsten project in north western
Spain. The Los Santos Mine was acquired by Almonty in September
2011 and is located approximately 50 kilometres from Salamanca in
western Spain and produces tungsten concentrate. The Panasqueira
mine, which has been in production since 1896, is located
approximately 260 kilometres northeast of Lisbon, Portugal, was
acquired in January 2016 and produces tungsten concentrate. The
Sangdong mine, which was historically one of the largest tungsten
mines in the world and one of the few long-life, high-grade
tungsten deposits outside of China, was acquired in September 2015
through the acquisition of a 100% interest in Woulfe Mining Corp.
Almonty owns 100% of the Valtreixal tin-tungsten project in
north-western Spain. Further information about Almonty’s activities
may be found at www.almonty.com and under Almonty’s profile at
www.sedar.com.
For and on behalf of the Board.
Lewis Black President and Chief Executive Officer Telephone: +1
647 438-9766 Email: lewis.black@almonty.com
Legal Notice
The release, publication or distribution of this announcement in
certain jurisdictions may be restricted by law and therefore
persons in such jurisdictions into which this announcement is
released, published or distributed should inform themselves about
and observe such restrictions.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
When used in this press release, the words “estimate”,
“project”, “belief”, “anticipate”, “intend”, “expect”, “plan”,
“predict”, “may” or “should” and the negative of these words or
such variations thereon or comparable terminology are intended to
identify forward-looking statements and information. These
statements and information are based on management’s beliefs,
estimates and opinions on the date that statements are made and
reflect Almonty’s current expectations.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of Almonty
to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: any
specific risks relating to fluctuations in the price of ammonium
para tungstate (“APT”) from which the sale price of Almonty’s
tungsten concentrate is derived, actual results of mining and
exploration activities, environmental, economic and political risks
of the jurisdictions in which Almonty’s operations are located and
changes in project parameters as plans continue to be refined,
forecasts and assessments relating to Almonty’s business, credit
and liquidity risks, hedging risk, competition in the mining
industry, risks related to the market price of Almonty’s shares,
the ability of Almonty to retain key management employees or
procure the services of skilled and experienced personnel, risks
related to claims and legal proceedings against Almonty and any of
its operating mines, risks relating to unknown defects and
impairments, risks related to the adequacy of internal control over
financial reporting, risks related to governmental regulations,
including environmental regulations, risks related to international
operations of Almonty, risks relating to exploration, development
and operations at Almonty’s tungsten mines, the ability of Almonty
to obtain and maintain necessary permits, the ability of Almonty to
comply with applicable laws, regulations and permitting
requirements, lack of suitable infrastructure and employees to
support Almonty’s mining operations, uncertainty in the accuracy of
mineral reserves and mineral resources estimates, production
estimates from Almonty’s mining operations, inability to replace
and expand mineral reserves, uncertainties related to title and
indigenous rights with respect to mineral properties owned directly
or indirectly by Almonty, the ability of Almonty to obtain adequate
financing, the ability of Almonty to complete permitting,
construction, development and expansion, challenges related to
global financial conditions, risks related to future sales or
issuance of equity securities, differences in the interpretation or
application of tax laws and regulations or accounting policies and
rules and acceptance of the TSX of the listing of Almonty shares on
the TSX.
Forward-looking statements are based on assumptions management
believes to be reasonable, including but not limited to, no
material adverse change in the market price of ammonium para
tungstate (APT), the continuing ability to fund or obtain funding
for outstanding commitments, expectations regarding the resolution
of legal and tax matters, no negative change to applicable laws,
the ability to secure local contractors, employees and assistance
as and when required and on reasonable terms, and such other
assumptions and factors as are set out herein. Although Almonty has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate and even if events or results described
in the forward-looking statements are realized or substantially
realized, there can be no assurance that they will have the
expected consequences to, or effects on, Almonty. Accordingly,
readers should not place undue reliance on forward-looking
statements and are cautioned that actual outcomes may vary.
Investors are cautioned against attributing undue certainty to
forward-looking statements. Almonty cautions that the foregoing
list of material factors is not exhaustive. When relying on
Almonty’s forward-looking statements and information to make
decisions, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events.
Almonty has also assumed that material factors will not cause
any forward-looking statements and information to differ materially
from actual results or events. However, the list of these factors
is not exhaustive and is subject to change and there can be no
assurance that such assumptions will reflect the actual outcome of
such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN
THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE
DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE
AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON
FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS
INFORMATION AS OF ANY OTHER DATE. WHILE ALMONTY MAY ELECT TO, IT
DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR
TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
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version on businesswire.com: https://www.businesswire.com/news/home/20210803005072/en/
Lewis Black President and Chief Executive Officer Telephone: +1
647 438-9766 Email: lewis.black@almonty.com
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