Almonty15 Mar 2018 18:12
Almonty clarifies March 13 NR re off-take deal
2018-03-15 13:06 ET - News Release
Mr. Lewis Black reports
ALMONTY INDUSTRIES INC. CLARIFIES CERTAIN INFORMATION IN ITS NEWS RELEASE DATED MARCH 13, 2018
Almonty Industries Inc. has clarified certain information with respect to its news release dated March 13, 2018, wherein the company announced that it has entered into a new off-take agreement dated March 12, 2018, with an existing customer for the tungsten concentrate to be mined and processed at the company's wholly owned Sangdong tungsten mine in South Korea.
The company wishes to clarify all references to the term "guaranteed" in its previous announcement dated March 13, 2018. While certain provisions of the Off-Take Agreement call for a minimum floor price for revenues over the life of the agreement, it does not, however, provide assurance of the future financial performance of the Sangdong Mine.
The realization of the benefits of the Off-Take Agreement are subject to risk factors typical of a supply agreement of this nature including if the Company is unable to meet its obligations to deliver tungsten concentrate in accordance with the terms of the Off-Take Agreement, variable costs of shipping and production over the term of the contract, the Customer's ability to purchase the tungsten concentrate produced by Almonty at the mine and the continued economic viability of the Customer or its successors for the life of the Off-Take Agreement. Finally, given these risks, there is no guarantee that the Company will realize the revenues contemplated under the terms of the Off-Take Agreement.
The Company is currently in late-stage negotiations for its expected US$85 million project financing for the Sangdong Project. As with all potential project financing, the key component of such financing (although there is no guarantee that the financing will be completed) is the completion of an off-take agreement which the Company was pleased to confirm in its news release dated March 13, 2018.
The Company expects to commence demolition at the Sangdong Mine site in April 2018 with an expected 18-month build-out thereafter. The EPC contractor, POSCO, is approximately 50% through the technical drawings and design phase.
A Technical Report on the Sangdong Project was filed by Almonty on SEDAR on August 29, 2016 and a Feasibility study on the Sangdong Project was filed by Woulfe Mining Corp. (subsequently acquired by Almonty in September 2015 - see news release dated September 11, 2015) on SEDAR on July 6, 2015, wherein, among other things, various project risks and an economic analysis are disclosed.
In addition, the Company will be filing this new off-take agreement on SEDAR as soon as possible.
About Almonty
The principal business of Almonty 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 Panasquei