Mannheim. Almonty Industries announced that the Project Finance Agreement with KfW-IPEX Bank for the construction of the Korean Sangdong Mine was definitively signed today. The project financing has a volume of USD 75.1 million.
The buyer of the tungsten concentrates, which is expected to be produced in Sangdong from 2022 onwards, will be the Austrian Plansee Group. The supply agreement has a term of 15 years and guarantees Almonty an attractive minimum price with a revenue of at least CAD 750 million. As part of the project financing, Plansee is also issuing guarantees to banks for almost USD 30 million to cover possible cost overruns and the equity financing of the project. The company also acquires shares from Lewis Black, the company’s CEO, making it the largest shareholder. Deutsche Rohstoff AG remains the third largest shareholder with a current stake of 12.8%. Plansee’s guarantees reduces the equity share that Almonty must raise as part of the project financing to around USD 14 million.
Mannheim, 7 December 2020
Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten complete the portfolio. Further information can be found at www.rohstoff.de