Almonty Announces the Full Repayment of the Outstanding Loan Owed to TaeguTec Ltd.

Almonty Industries Inc. (AII.V) (“Almonty”) announces that it has repaid the outstanding CAD$6,549,518 loan and accrued interest that was owed to TaeguTec Ltd. effectively releasing any and all security held by TaeguTec over the Sangdong Mine project. The loan was due on December 31, 2016. In addition to the repayment, Almonty and TaeguTec have terminated all the other agreements that were previously in effect between the parties relating to Sangdong. The loan was repaid out of funds borrowed pursuant to a previously announced loan agreement.

Almonty Tungsten Mine Photo

Almonty has also 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. The nature and terms of the commitment are currently being finalised. It would essentially be 100% debt financing of the buildout meaning current shareholders would face no dilution of their ownership position. Almonty believes that the outcome of the negotiations will satisfy the requirements of the Letter of Commitment for up to KRW50,000,000,000 of debt financing currently in place with the Korean Development Bank for the build -out of the Sangdong Mine enabling Almonty to begin the construction in fiscal 2017. Almonty is currently finalising, with the same industry participant an off-take agreement covering 100% of the initial planned production of the Sangdong mine and expects to conclude these discussions in the near-term.

About Almonty
The principal business of Toronto, Canada-based Almonty Industries Inc. is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain, its Wolfram Camp Mine in north Queensland, Australia and its Panasqueira mine in Portugal as well as the development of the Sangdong tungsten mine in Gangwon Province, Korea and the Valtreixal tin/tungsten project in north western Spain.  

 

微信公众号

 

WeChat