Mannheim/Toronto. Almonty Industries announced today that it received a letter of commitment from an industry participant with respect to the funding of the equity component of the overall financing package needed to bring the Sangdong Mine into production. It will be provided by an industry participant by way of a loan financing. As a result, the mine would essentially be 100% debt financed without dilution of shareholders.
In order to fulfill the prerequisites for the financing, Almonty repaid a C$ 6.5 million loan from the Korean TaeguTec Ltd. that was due as at December 31, 2016 early. TaeguTec subsequently released all security it held over Sangdong.
Thomas Gutschlag, CEO of Deutsche Rohstoff, noted: “Our investment exposure in Almonty represents by far our largest position in the metals and mining industry. We believe that the company is on a very good track after today´s news. Despite the still challenging market environment, the management team is consequently implementing its strategy to become the most important producer of tungsten concentrate outside China.”
Deutsche Rohstoff directly holds 12.58% of Almonty´s share capital and in addition two convertible bonds that will increase its stake to 19.58% in case they will be fully exercised.
Mannheim, 28 November 2016
Deutsche Rohstoff identifies, develops and divests attractive resource projects in North America, Australia and Europe. The focus is on the development of oil and gas opportunities within the United States. Metals, such as gold, copper, rare earth elements, tungsten and tin complete our portfolio. For more information please visit www.rohstoff.de.