Highlights:
- US$9.82 million drawdown of KfW IPEX-Bank (“KfW”) project
finance facility completed – third scheduled drawdown;
- Total drawn under KfW IPEX-Bank facility now stands at US$26.7
of total US$75.1 million facility;
- Sangdong mine construction remains on track and when in
operation will be the world’s largest tungsten mine outside of
China;
- Exploring additional downstream processing opportunities which
could see Almonty directly participating in the battery anode and
cathode and semi-conductor manufacturing industry in South
Korea.
Almonty Industries Inc. (“Almonty” or “the
Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt:
ALI), is pleased to announce it has completed its third scheduled
drawdown of the total US$75.1 million KfW IPEX-Bank project finance
facility for its Sangdong Tungsten Mine (the Loan Facility),
and to provide a project update from the Chairman of the
Company.
The total amount drawn under the Loan Facility now stands at
US$26.7 million. The Company is pleased to report that the
drawdowns are being completed on schedule as per the project
drawdown agreement.
Almonty’s Chairman, President and CEO Lewis Black commented:
“We are pleased to have received the third
drawdown from our financing partners, KfW IPEX-Bank, under the
US$75.1 million project financing loan facility which are occurring
in-line with the drawdown schedule which is occurring on time as
planned.
I was pleased to host representatives from
the KfW IPEX-Bank, our offtake partner Plansee/GTP and the
independent consultants, Hatch, to the site at the Sangdong
Tungsten Mine in October 2022.
In addition to a construction update, the
parties further investigated the potential of Almonty to directly
participate in the battery anode and cathode and semi-conductor
manufacturing industry via the potential development of a 3,000t
p.a. vertical nano tungsten oxide plant in South Korea.
Almonty has already signed an LOI with KfW
IPEX-Bank in January 2022 to potentially fund up to US$50 million
of this downstream processing opportunity which would see Almonty
participate in the full supply chain from mine to battery products.
We will continue to progress this opportunity in tandem with the
construction of the Sangdong Tungsten Mine which is progressing as
planned. Further details will follow once engineering design work
has been commenced.
I am also pleased to note the strong tungsten
price which has risen to circa US$350/MTU which represents a 50%
rise over the past year. This strong price, coupled with our
unprecedented floor price guarantee in our contract with our
offtake partner Plansee GTP of US$235/MTU (with no upside cap) has
the potential to generate truly spectacular returns for our
shareholders once commissioning has commenced in the second half of
2023.”
KfW Facility Background
The Loan Facility is funded by KfW IPEX-Bank GmbH, a 100% German
state-owned development bank, pursuant to which the Company has
access to a total US$75.1 million to finance the development and
operation of the Sangdong Mine. The terms of the Loan Facility are
favourable to the Company and the Sangdong Mine is targeted to be
in operation well before the Loan Facility matures and becomes
repayable.
This announcement has been approved by Lewis Black, Chairman,
President and CEO.
About Almonty Industries Inc. (almonty.com)
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.
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/20221115005751/en/
For further information: Lewis Black Chairman, President and CEO
p: +1 647 438-9766 Email: info@almonty.com
For investor and media enquiries: Reign Advisory p: +61 2 9174
5388 e: aii@reignadvisory.com
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