Sales price of 18 million Canadian Dollar/Shareholding in larger tungsten company
Heidelberg/Toronto. The sale of Deutsche Rohstoff`s Wolfram Camp tungsten mine in Queensland/Australia has been completed today. Deutsche Rohstoff sold all shares of the 100% owned subsidiaries Wolfram Camp Mining and Tropical Metals. The companies are the operating entities for the mine. The buyer is the Canadian company Almonty Industries that operates the Los Santos tungsten mine in Spain. Shares of Almonty are traded on the Canadian TSX Venture exchange in Toronto.
The purchase price amounts to 18 million Canadian Dollar (CAD), which converts to approximately 12.7 million Euro at current exchange rates. According to the contract the purchase price consists of the following components:
– Deutsche Rohstoff has received 12.2 million shares issued by Almonty that represent a value of CAD 10.5 million at the 15 day volume weighted average price of 0.86 CAD at signing of the contract. The shares translate into a shareholding of Altmonty’s issued stock of 24.9%
– For the remaining share of the purchase price of close to CAD 7.5 million, Deutsche Rohstoff has received a convertible bond. The bond has a maturity of 2.5 years at an interest rate of 4%. DRAG has the option to convert the bond into shares of Almonty at a conversion price of CAD 1.45.
Titus Gebel, CEO of Deutsche Rohstoff AG, commented: “We are happy that we were able to complete the sale of Wolfram Camp. From our perspective, Almonty is the ideal buyer for Wolfram Camp. We believe that Almonty will be the only TSX/TSX-V listed company with two operating tungsten mines, producing both scheelite and wolframite concentrate. As a significant shareholder in Almonty, we are looking forward to supporting the further development of Almonty to a larger tungsten mining company. At the same time, we thank management and employees of Wolfram Camp for their strong commitment over the last three years and their ongoing efforts to build a successful mine. We wish the team all the best for the future development of Wolfram Camp.”
Heidelberg, 23 September 2014