Creation of leading tungsten producer outside China
Heidelberg. Almonty Industries announced today that it has entered into a non-binding letter of intent to combine the businesses of the two companies and create the leading tungsten company outside China. The transaction is expected to be closed within the next 30 days.
The full text of the press release can be found on Almonty’s webpage www.almonty.com
Almonty operates the Los Santos mine in Spain as well as the Wolfram Camp mine in Australia. In addition, Almonty is developing the Valtreixal tin/tungsten mine in northwestern Spain with anticipated production in 2017. Woulfe’s principal asset is the 100%-owned Sangdong tungsten/molybdenum project in South Korea. The project comes with a final feasibility study and a very significant tungsten resource.
Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: “Almonty consequently implements its strategy to build the largest tungsten producer outside China. It reaches critical mass to dictate WO3 pricing and/or become a highly attractive acquisition target. Deutsche Rohstoff as Almonty’s second largest shareholder fully supports this strategy and are convinced that our shareholding will gain further value.”
Deutsche Rohstoff holds 24.9 % of the Almonty share capital and in addition a CAD 7.5 million convertible bond, which can be converted into Almonty shares at a share price of CAD 1.45.
Heidelberg, 27 January 2015