Almonty Advances Equities for Growth and Expansion Plans

Almonty Industries Secures Enhanced Equity Commitments

Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / OTCQX: ALMTF) has recently announced that it has successfully received additional commitments for a proposed equity placement aimed at raising significant funds. This new round of funding will enhance Almonty's financial positioning, increasing gross proceeds to approximately A$15.45 million. The platform for this capital raise involves the issuance of 4.53 million Canadian units along with 12.08 million Placement Chess Depository Interests Units (CDIs), with the pricing set at C$0.82 per Canadian unit and A$0.90 per CDI Unit.

Details of the Equity Placement

The updated equity placement reflects the company’s focused efforts to strengthen its financial flexibility. Participants in this offering will receive one warrant for each common share allocated and a free unlisted option for every CDI issued. The exercise prices are set at C$1.14 for warrants and A$1.25 for options, valid for three years from close. The anticipated closing date is approximately January 20, 2025, contingent upon obtaining necessary regulatory approvals.

Strategic Use of Funds

With the funds generated from this equity placement, Almonty will focus on restructuring its balance sheet as a part of a broader strategy to address operational costs and enhance productivity across its mining assets. By securing these additional resources, the company aims to bolster its market position and streamline operations to support its long-term growth plans.

Regulatory Approvals and Management

The completion of this equity placement is subject to obtaining all necessary approvals from regulatory bodies, including the TSX. RM Corporate Finance Pty Ltd has played a key role as the Lead Manager for this placement, ensuring robust management of the process and facilitating investor relations. RM will receive a fee equivalent to 6% of the total funds raised through its efforts.

Overview of Almonty Industries

Almonty Industries Inc., headquartered in Canada, is deeply engaged in the mining, processing, and shipment of tungsten concentrate sourced from its operational mines, including the Los Santos Mine in Spain and the Panasqueira mine in Portugal. The company's strategic portfolio also includes the development of the Sangdong tungsten mine in South Korea, known for its high-grade deposits.

Token of Confidence from Investors

The extra financial commitments underscore investor confidence in Almonty’s operational model and growth potential. With a background of producing tungsten — a critical mineral in various industrial applications — the company is positioned to capitalize on favorable market trends as global demand for its products continues to rise.

Looking Ahead

As Almonty moves forward, it will build upon its strategic initiatives to not only improve financial health but also enhance operational capabilities. The forthcoming funds will play a vital role in supporting their ongoing projects and ensuring effective management of resources as the company aims for sustainability and profitability in the competitive mining sector.

Frequently Asked Questions

What is the purpose of the equity placement by Almonty?

The equity placement aims to raise funds to restructure the company’s balance sheet and cover operational costs.

How much capital is Almonty looking to raise?

Almonty is targeting approximately A$15.45 million through this equity placement.

What are the resources and projects managed by Almonty?

Almonty manages tungsten production from its Los Santos and Panasqueira mines and is developing the Sangdong tungsten mine in South Korea.

Who is managing the equity placement?

RM Corporate Finance Pty Ltd has been appointed as the Lead Manager for this equity placement.

When is the expected closing date for the placement?

The Canadian units and CDI Placement Units are expected to settle around January 20, 2025.

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