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.
Fourth Sangdong Tungsten Mine Loan Facility Drawdown
Last Updated, April 4, 2023
Written by Lewis Black
“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.”
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- US$5.6 million drawdown of KfW IPEX-Bank project finance facility completed fourth scheduled drawdown;
- Total drawn under KfW IPEX-Bank facility now stands at US$32.3 million of the total US$75.1 million facility;
- Sangdong mine construction remains on track for commissioning in 2024 and when in operation will be the world’s largest tungsten mine outside of China.
Toronto – April 3, 2023, – Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI.F) is pleased to announce that it has completed its fourth scheduled drawdown of the total US$75.1 million KfW IPEX-Bank project finance facility for its Sangdong Tungsten Mine (the Loan Facility) located in South Korea.
The total amount drawn under the Loan Facility now stands at US$32.3 million. The Company is pleased to report that the drawdowns are being completed on schedule as per the project drawdown agreement.
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.
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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.
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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]