Company also acquires Woulfe Mining, Sangdong tungsten-molybdenum mine
By Devika Patel
Knoxville, Tenn., Sept. 11 – Almonty Industries Inc. said it plans a C$4 million non-brokered private placement of two-year 5% secured convertible debentures with Deutsche Rohstoff AG, a C$1.68 million non-brokered private placement of stock and a C$2.1 million unsecured bridge financing.
The debenture converts to common stock at C$0.81 per share, which is identical to the Sept. 10 closing share price.
The company also will sell million common shares at C$0.80 per share, which is a 1.24% discount to the Sept. 10 closing price.
The 12% bridge loan matures in two years.
The company also said it has acquired Woulfe Mining Corp., which through its subsidiary Sangdong Mining Corp., develops the Sangdong tungsten-molybdenum mine, historically one of the largest tungsten mines in the world.
Under the arrangement, each Woulfe common share has been exchanged for 0.1029 Almonty shares, for a total of 34,806,205 Almonty common shares.
“We are pleased to have reached this milestone and continue to believe that the marriage of Woulfe’s flagship Sangdong tungsten project to Almonty’s existing portfolio of producing assets will benefit all of Almonty’s shareholders,” president and chief executive officer Lewis Black said in a press release.
“This acquisition furthers our goal of becoming the leading producer of tungsten concentrate outside of China with assets located in secure, mining friendly, jurisdictions. The merger provides investors with an ideal way to gain broader exposure to the tungsten sector and strategically positions the company to benefit from the expected upturn in the commodity price.”
The Toronto company mines, processes and ships tungsten concentrate from its Los Santos Mine in Spain and its Wolfram Camp Mine in Queensland, Australia.
| Issuer: | Almonty Industries Inc.
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| Issue: | Secured convertible debenture, common stock, unsecured bridge financing
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| Amount: | C$7.78 million
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| Warrants: | No
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| Agent: | Non-brokered
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| Pricing date: | Sept. 11
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| Stock symbol: | TSX Venture: AII
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| Stock price: | C$0.81 at close Sept. 10
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| Market capitalization: | C$39.64 million
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| Convertibles
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| Amount: | C$4 million
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| Maturity: | Two years
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| Coupon: | 5%
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| Conversion price: | C$0.81
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| Call: | At a 10% premium
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| Investor: | Deutsche Rohstoff AG
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| Stock
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| Amount: | C$1.68 million
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| Shares: | 2.1 million
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| Price: | C$0.80
|
|
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| Bridge financing
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| Amount: | C$2.1 million
|
| Maturity: | Two years
|
| Coupon: | 12%
|
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