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 Raises US$3.3M from Insiders and Existing Shareholders to Satisfy Final Plansee/GTP Condition Precedent to the Financial Closing of KfW US$75.1M Finance Facility – Drawdown Expected On Or Around May 21
Last Updated, May 11, 2022
Written by Lewis Black
“The Company would like to take the opportunity of updating the shareholders on the current status at site in Korea and the Tungsten market generally. What is important is to highlight that the Company placed orders for all of the long lead time equipment, both milling and flotation last year in 2021, prior to the drawdown. This enabled us to capture pricing and delivery times on significantly more favourable terms than if ordered today”
“However, delivery dates have been extended by 2 months with global shipping delays being the main issue, but it will not delay work at the site as we have merely adjusted our schedule to bring forward areas that are manufactured or planned in South Korea and pushed installation of imported items not yet in country to compensate for the shipping delays. On the back of this we have updated our commissioning date toward the end of Q2 2023. Given our continuing push to save costs to counter ongoing inflation on certain consumable/building items and the delays in shipping, the Company feels this delay is warranted and justified.”
“On our latest analysis of total cost escalation has resulted in a maximum of 5% price increase which is comfortably absorbed by our 15% contingency built into the project cost. Currently this increase stands at 4.75%. We intend to reduce that by looking at areas where we can save further money. I would also like to add that energy costs in South Korea have risen approximately 8% but is not expected to rise further as prices are set by the State through KEPCO. Nuclear and renewables account for more than 35% of South Korea’s energy platform.”
“As for energy costs in Portugal at our Panasquiera mine, we have fixed our forward price for the next 2 years at which is now at a reduction on our 2021 price and saves the mine approx. EUR560,000 per year. This is approximately 60% below current Portuguese energy market prices. Production continues to be stable in Portugal. We are now ready for drawdown as we enter the accelerated construction phase in South Korea.”
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Sangdong Construction Timeline Update
Toronto – May 11, 2022, – Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI.F) is pleased to announce the closing of its private placement to Directors of Almonty, existing shareholders and other insiders of 2,852,251 common shares at CDN$0.94 per share and 1,428,571 Units at US$0.70 per Unit to raise gross proceeds of approximately US$3.3 million (“Placement”). Each Unit of the 1,428,571 units will be comprised of one common share and one-half share purchase warrant with each whole warrant being exercisable at a price of US$0.84 for 24 months from closing.
The use of proceeds of this Placement will be to pay the Plansee/GTP fees, of which the upfront cash portion of US$3.0 million has now been paid.
PLANSEE/GTP SATISFACTION OF CONDITIONS PRECEDENT
The Company is pleased to advise that it has executed a Conditions Precedent Letter with Plansee/GTP whereby both parties have agreed that Almonty has satisfied the conditions precedents required by Plansee/GTP to enable financial closing of the KFW US$75.1 million finance facility. They key terms of the Conditions Precedent Letter are:
1. Payment of GTP Obligations of US$3.0 million – paid in cash from the proceeds of the Placement.
2. Within 120 calendar days of the financial closing of the project financing, Almonty remitting the Outstanding Balance owing of approximately US$1.8 million. In the event that the Outstanding Balance is not paid within 120 calendar days of the financial closing of the Project Financing, Almonty will satisfy any remaining portion of the Outstanding Balance by issuing common shares in Almonty to Plansee/GTP, at a price per share equal to the closing market price of Almonty’s common shares on the trading day prior to issuance.
Now that Plansee/GTP have signed the satisfaction of Conditions Precedent letter, KfW IPEX–Bank will now move to internal sign off. Almonty expects by Friday May 21st that KfW IPEX–Bank will confirm financial close at which point the drawdown of the US$75.1 million will begin.
Updated Sangdong Tungsten Mine Timeline
Director Share Sale
The Company advises that on April 14, 2022, Mr Lewis Black sold 300,000 common shares in Almonty to cover a capital gains tax liability. The common shares were crossed to an existing long term holder of Almonty. After the sale, Mr Lewis Black remains one of the largest shareholders in the Company with 11,032,895 common shares (direct) and 13,893,920 common shares (indirect) which represents approximately 11.91% of the Company, and confirms that there are no further sales planned at this time.
For and on behalf of the board of
Almonty Industries Inc.
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]