Sangdong Mine Completion Ceremony Marks a Defining Milestone for Almonty
The completion of the Sangdong Mine marks a defining milestone for Almonty and a major step in restoring a globally significant tungsten asset to production.
Almonty Industries Inc. Announces An End-Of-Year Christmas Update
Last Updated, December 14, 2020
Written by Lewis Black
“With the successful execution of the KFW, loan we can now go back to our continuing growth not just from building the world’s largest tungsten project but also to look at our 100% owned Moly deposit and if other viable acquisitions are matched to our strategy.
We have received multiple inquiries from shareholders regarding the final make up of the ownership structure and Board composition after financial close of the KFW US$75.1m debt financing. The Plansee group will not become a control person which is triggered at a 20% ownership and will have one seat of a 6-person Board. The role of Chairman, President and CEO will remain unchanged and I will also remain the second largest shareholder, merely swapping places with GTP/Plansee from the largest to the second. Given the importance of the Sangdong project to the Plansee Group supply chain and, in turn, to their customers, it is important to both the Plansee Group and to Almonty that they sit on our Board.
I wish all of our shareholders and customers a Happy Christmas and look forward to an incredible 2021”
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Toronto – December 14, 2020 – Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / OTCQX: ALMTF / Frankfurt: 1MR) is pleased to announce an end-of-year update across all projects around the world.
Almonty Korea Tungsten
Sangdong Project – After the previously announced execution of the loan agreements, the Company wishes to update the market on its current status. The Monty B portal has been completed on time and was increased from 120m to 131.1m.
The office/Laboratory has also been completed on time. The phase 2 mine development of 600m will commence this week and the Company is now discussing with Metso the ordering procedure and protocols for the long lead time crushing equipment. Metso are currently with members of the Almonty team in Portugal concluding the lock cycle process tests which will then enable Metso to finalize their engineering study of the flotation plant. The crushing engineering study was finalized 6 months ago.
Los Santos Mine
With the increasing Tungsten prices in the past couple of weeks and the expected aggressive price increases expected in 2021 due to replenishments of inventories and a supply deficit, the Company is now preparing Los Santos to reactivate the tailings processing section of the plant. A recent report by the head of global commodities research at Goldman Sachs’, Mr Jeffrey Currie, on December 8th has merely added to our confidence in pricing in 2021.
Panasqueira Mine
Production rates will be maintained in 2021 and this mine will continue to produce the highest-grade Wolframite available in the market backed by the highest recovery rate of any Tungsten gravity plant in the world.
The sheer depth of Tungsten and Tin understanding contained in this project’s fifth generational team makes them the global leader in Tungsten/Tin expertise. This depth of knowledge has enabled the Company to approach our Sangdong project with a high degree of successful certainly and this was a deciding factor in KFW/Plansee supporting the build so convincingly.
Valtreixal
The permit process is on going as foreseen, but regrettably the covid crisis in Spain has slowed the progress. We now expect a further 3 months delay until permits are finalized. However, given its low operational cost and extremely high tin content (30%), Valtreixal will be a much welcomed addition to our portfolio once operational.
Almonty Korea Moly Project
Now that the financing has concluded for Almonty Korea Tungsten, the Company can turn its attention to converting the historical data of the resoucre into a 43-101 compliant instrument with drilling scheduled for early 2021.
With only 150m separating the Moly deposit from our existing infrastructure, the drill program will be extremely cost-effective. Our reported numbers of 16.3mt at 0.40% Mo are quoted with a 40% reduction which is applied when confirmation drilling has not confirmed the historical data.
The Company believes once confirmation drilling is concluded, it will clearly demonstrate one of SE Asia’s largest Moly deposits in both longevity of approx 50 years and grade, and is easily accessible from the exisitng infrastruture. It is worth noting that South Korea is one of the largest consumers of Moly in the world mainly related to the steel business, and currently the vast majority of Mo is imported. There is considerable local support to see this resource developed as quickly as possibe. This will furher soldify our position as South Korea’s largest mining company.
Almonty Corporate
During the run up and closing of the KFW financing, the Company had to provide a snap shot of the Company to the lender. This meant that all previous strategies of growth through acquistion had to remain on hold. Normally, this is not an issue, but given how long the closing took, the Company has not been active for sometime. Now that the KFW execution has occured, the Company can resume its growth approach to continually increase our Tungsten/Moly foot print as strategic metals continue to gain importance across the world with multiple private companies now looking to stockpile.
Almonty Industries Reports Fourth Quarter and Full Year 2025 Financial Results
Almonty today announced its financial results for the three and twelve months ended December 31, 2025.
Almonty Completes Phase 1 of Sangdong Tungsten Mine in South Korea
Almonty today announced the completion of Phase 1 commissioning at its Sangdong Tungsten Mine in Gangwon Province, South Korea – marking the return to production after more than 30 years.
About Almonty
Almonty (NASDAQ: ALM) (TSX: AII) (ASX: AII) (FSE: ALI1) is a leading supplier of conflict free tungsten – a strategic metal critical to the defense and advanced technology sectors. As geopolitical tensions heighten, tungsten has become essential for armor, munitions, and electronics manufacturing. Almonty’s flagship Sangdong Tungsten Mine in South Korea, historically one of the world’s largest and highest-grade tungsten deposits, is expected to supply over 80% of global non-China tungsten production upon reaching full capacity, directly addressing critical supply vulnerabilities highlighted by recent U.S. defense procurement bans and export restrictions by China. With established operations in Portugal and additional projects in Spain, Almonty is strategically aligned to meet rapidly rising demand from Western allies committed to supply-chain security and defense readiness. To learn more, please visit 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.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws.
All statements, other than statements of present or historical facts, are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are typically identified by words such as “plan”, “development”, “growth”, “continued”, “intentions”, “expectations”, “emerging”, “evolving”, “strategy”, “opportunities”, “anticipated”, “trends”, “potential”, “outlook”, “ability”, “additional”, “on track”, “prospects”, “viability”, “estimated”, “reaches”, “enhancing”, “strengthen”, “target”, “believes”, “next steps” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements in this news release include, but are not limited to, statements concerning the completion of the Offering, the Company’s redomiciling initiatives, the Company’s position as a leading supplier of tungsten to the U.S. and its allies, the timing of any listing of the Common Shares on the Nasdaq, the continued listing of the Common Shares on the TSX and the ASX and trading on the Frankfurt Stock Exchange, and the use of proceeds of the Offering.
Forward-looking statements are based upon certain assumptions and other important factors that, if untrue, could cause actual results to be materially different from future results expressed or implied by such statements. There can be no assurance that forward-looking statements will prove to be accurate. Key assumptions upon which the Company’s forward-looking information is based include, without limitation, the absence of market conditions that could adversely impact the Offering or the intended listing of the Common Shares on the Nasdaq; the satisfaction of all listing requirements of the Nasdaq and continued listing requirements of the TSX and ASX; the achievement of any closing conditions to the Offering; and the absence of material adverse changes in the Company’s industry or the global economy including interest rates, inflationary pressures, supply chain disruptions, and commodity market volatility.
Forward-looking statements are also subject to risks and uncertainties facing the Company’s business, including, without limitation, the risks and uncertainties identified in the Registration Statement; risks relating to the Offering not being completed in a timely manner or at all, including due to unfavourable market or other conditions or factors; the possibility that the required approvals for or conditions to the Offering will not be received or satisfied on a timely basis or at all; changes in the anticipated timing for closing the Offering; business disruption during the pendency of or following the Offering; diversion of management time on Offering-related issues; the ability to retain members of Almonty’s management team; the impact of the Offering on relationships with customers, suppliers, employees and other business counterparties; risks related to the reaction of customers, shareholders and members of the public to the Offering; and other events that could adversely impact the completion of the Offering, including industry or economic conditions outside of Almonty’s control. Any of these risks could have a material adverse effect on the Company’s business, financial condition, results of operations and growth prospects. Readers should consider reviewing the detailed risk discussion in the Company’s Registration Statement, the most recent Annual Information Form and the amended Management Discussion and Analysis for the three months ended March 31, 2025 filed on SEDAR+, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.
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, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
For further information, please contact:
Lewis Black
Chairman, President and CEO
Telephone: +1 647-438-9766
Email: [email protected]