Fourth Sangdong Tungsten Mine Loan Facility Drawdown

““We are pleased to have received the fourth drawdown from our financing partners, KfW IPEX-Bank, under the US$75.1 million project financing loan facility. These drawdowns are occurring on time, as planned, in line with the drawdown schedule.”

 

“Much of what occurs when building a tier one mine such as Sangdong, in a developed democracy, occurs behind the scenes. We are building a mine that will serve as the focal point of western tungsten production, and it is important to ensure that plans are executed with diligence and consideration, as we are doing.”

 

“All long lead time equipment is now in Korea except for one drive that is waiting to be shipped from France. We have recently hosted multiple regional and local government visits as well as multiple residents who are all excited at the prospect of the reopening of the former largest tungsten mine in the world, especially in how it relates to both the local economy and the contribution it will make to
Korea’s technology and heavy industrial economies, which have the highest per capita consumption of Tungsten in the world. All engineering plans are now finalised and surface scalping will shortly
begin.”

 

“There is a reason that KFW IPEX-Bank has and continues to support the Sangdong project as it qualified for a tier 1 financing on the merits of the project and on the experience of our team. This fourth drawdown ensures that all the parties are comfortable that we are proceeding as anticipated and in a manner that ensures that we have maintained the highest levels of ESG to date.”

 

“Work also continues on the downstream Tungsten Oxide plant with a location 28kms from the Sangdong Mine at the Seok Moon Industrial Complex, which was identified due to its excellent existing infrastructure — i.e. access to sufficient water, electricity, communications and gas as well as existing environmental permitting. We are also pleased to advise that the scoping study for the downstream Tungsten Oxide plant has now been completed. We are moving now to the application process with KFW IPEX-Bank which, in turn, leads to its credit approval committee. It is, as it has been with Sangdong, a lengthy process but ultimately represents the highest quality of financing available globally.”

 

“I am also pleased to note that the tungsten price has continued to remain strong against a backdrop of increasing demand especially from the defence sector. The last observed price on March 24th was
US$336.50/MTU. This strong price, coupled with our unprecedented floor price guarantee in our contract with 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.”

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.

Disclaimer for Forward-Looking Statements

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 in this press release include, but are not limited to, statements regarding the expected use of proceeds of the Debenture Offering. The forward-looking statements and information in this press release include information relating to the intentions of management. Such statements and information reflect the current view of Almonty with respect to risks and uncertainties that may cause actual results to vary. 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: the receipt of all required approvals, unanticipated costs and expenses, general market and industry conditions and perational
risks, including large project risk and contractual factors, 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, 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 of the TSX.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, the receipt of all required final approvals, no unanticipated delays in the project financing, no material unanticipated costs and expenses, no material adverse change in general market and industry conditions and no unanticipated material operational risks, including large project risk and contractual factors, no material adverse change in the market price of 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 DO SO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS. 

For further information, please contact:

Lewis Black
Chairman, President and CEO
Telephone: +1 647-438-9766
E-mail: info@almonty.com

The head office of Almonty is:

100 King Street West
Suite 5700
Toronto, Ontario
M5X 1C7