LOI With KfW IPEX-Bank for a Further US$50
Million for Downstream Funding
Almonty Industries Inc. (“Almonty” or the
“Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt:
ALI) is pleased to announce it is investigating the construction of
a vertically integrated nano tungsten oxide downstream processing
plant (Sangdong Downstream Extension Project) to supply the
South Korean battery anode manufacturing industry and the execution
of a letter of intent (LOI) for the funding of the Sangdong
Downstream Extension Project with the Company’s existing debt
provider, KfW IPEX-Bank, for the funding of the Sangdong Downstream
Extension Project.
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Figure 1: Sangdong Tungsten Mine -
Downstream Extension Project Processing Flow Sheet (Graphic:
Business Wire)
Almonty’s Chairman, President and CEO Lewis Black commented:
“The battery and semiconductor industry offers massive
additional growth potential for the tungsten market and
specifically for Almonty in South Korea. As the largest per capita
consumer users of tungsten globally and with some of the largest
semiconductor and battery manufacturers in the world located in
South Korea, we are very pleased to be investigating this key
growth initiative to supply the green energy revolution which
should add further layers of value to the Sangdong Tungsten Mine
and Almonty as a company.
We are also pleased to have the continued support of KfW
IPEX-Bank who have signed a LOI to provide a further US$50m of debt
funding for the Sangdong Downstream Extension Project.”
Sangdong Downstream Extension
Project
Demand for tungsten has been growing due to rising demand for
semiconductors from the automotive, industrial and consumer
electronics industries, powered by remote working and learning
trends as well as business digitalization. The growing EV market
has led to the development of new battery technologies, such as
Niobium Tungsten Oxide (NWO) batteries that uses NWO anodes based
on nano Tungsten Oxide Powder to improve life cycles, cost
efficiency & fast charging technologies. Almonty understands
that the use of nano Tungsten Oxide Powder, due to their high
intrinsic density and rich framework diversity as well as heat
resistance, increases the safety features of the battery. The
battery industry also directly implements tungsten oxide into their
formulations for anodes and cathodes.
South Korea is the largest per capita consumer of tungsten
worldwide, however it imports 94.7% of its tungsten oxide from
China. Further, South Korea consumes ~40% of global Tungsten
Hexafluoride gas (WF6), which is used in the production of
semiconductors, the raw material of which is nano tungsten oxide
which Almonty is investigating production of.
Given South Korea’s continuing and increasing demand for
tungsten and the fact that Almonty is the only tungsten miner in
the country, the Company has been in constant dialogue and has a
strong relationship with the South Korea government.
In order to generate additional returns from the Sangdong
Tungsten Mine, Almonty has therefore undertaken high level
investigation of a vertically integrated nano tungsten oxide
downstream processing plant which would be located on-site at the
Sangdong Tungsten Mine.
The initial parameters that the Company has outlined for the
Nano Tungsten Oxide Downstream Processing Plant include:
- Size: 3,000t – 4,000t p.a.
- Located: On-site at Sangdong Mine, South Korea.
- Feed material: Sangdong Tungsten Mine and other Almonty mines
globally as / if required. Locally produced scrap.
- Equipment/Plant to be provided by: Metso Outotec (Finland),
Inductotherme Europe (UK), Pfeiffer (Austria)
The initial investigation report has now been completed and
discussions are ongoing with the South Korean Government and the
major South Korean consumers how best to accelerate this program.
The current timeline is that this program would run concurrently
with the build out and reopening of the Sangdong mine currently
underway. Once this tungsten program has been clearly defined and
initiated, the Company and the South Korean Government would then
look at a similar downstream domestic consumption program for the
Company’s Molybdenum project also located at the Sangdong mine
where South Korea is now the 4th largest importer of Molybdenum in
the World.
LOI for US$50m Funding from KfW
IPEX-Bank
Following a period of initial due diligence, Almonty is pleased
to also announce it has signed a LOI for US$50m funding from KfW
IPEX-Bank for the Downstream Extension Project.
KfW IPEX-Bank is the German 100% state-owned development bank
which after extensive environmental and commercial project due
diligence which confirmed our project’s quality, separately
provided a US$75.1 million project debt facility for the
construction of the Sangdong Tungsten Mine at the very low interest
rate of LIBOR/SOFR +2.5%.
Almonty does note that whilst this LOI is positive it is not a
formal offer of finance or a representation that financing will be
available and does not create any form of legal or other obligation
on KfW IPEX-Bank whatsoever. The LOI is non-binding and remains
subject to satisfactory due diligence, all relevant approvals
(including credit approvals and other internal approvals),
execution of relevant project and finance documentation under a
contractual framework satisfactory to KfW IPEX-Bank and fulfilment
of any applicable conditions precedent set out in definitive
financing documentation.
About Almonty
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. Further information about Almonty’s activities may
be found at https://almonty.com/ and under Almonty’s profile at
www.sedar.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.
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/20220330005133/en/
Lewis Black Chairman, President and CEO Telephone: +1 647
438-9766 Email: info@almonty.com
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