Heidelberg/Toronto. Almonty Industries (DRAG share 13,7%) announced that it has extended its existing Supply Agreement with Global Tungsten & Powders Corp. (“GTP“) by another five years. Concurrently, the company also entered into a long-term USD 14 million working capital loan agreement with UniCredit Bank, which is indirectly guaranteed by GTP. The loan carries an interest rate of LIBOR plus a spread of less than 2%. Draw downs can be made depending on production and prices. Repayment is not due before APT prices reach $276/mtu (currently around $ 185/mtu) and will be gradual only accelerating at $320/mtu.
Furthermore, Deutsche Rohstoff issues a short-term loan to Almonty. The 6% bearing promissory note in the principal amount of USD 1 million is due and payable 1 January 2017 and is secured with the South Korean Sangdong asset.
Lewis Black, President & CEO of Almonty says: “The expanded guarantee under the working capital loan agreement has enabled Almonty to access an additional USD 14 million in working capital, allowing the company to sustain its operations during this unprecedented period of low spot prices for APT.”
A detailed press release can be found on Almonty’s website: http://www.almonty.com.
Heidelberg, 24 December 2015
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