Almonty news13 Mar 2018 20:58
Almonty signs 10-year tungsten supply off-take deal
2018-03-13 16:23 ET - News Release
Mr. Lewis Black reports
ALMONTY INDUSTRIES INC. ANNOUNCES THAT IT HAS SIGNED A TEN YEAR OFF-TAKE AGREEMENT WITH A GUARANTEED MINIMUM VALUE CDN$500,000,000 FOR ITS WHOLLY-OWNED SANGDONG TUNGSTEN MINE IN SOUTH KOREA
Almonty Industries Inc. 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 agreement has a term of 10 years and, based upon current pricing models and subject to the terms and conditions of the agreement, the agreement calls for guaranteed revenues for the company for a minimum of $500-million.
Lewis Black, chief executive officer of Almonty, commented: "We are pleased to have been able to negotiate and execute the single-largest underwritten minimum revenue guaranteed supply agreement in the modern era in tungsten for our wholly owned Sangdong mine. We now have total downside protection for our output and no cap on the upside, ensuring the long-term viability of the Sangdong mine regardless of market conditions. This agreement is testament to the strength and long-term viability of the project and the Almonty operating team. We believe that the outcome of this agreement in conjunction with our other operating and development tungsten assets will ensure our continuing market dominance as a Western-based tungsten producer for many years to come."
Related party transaction
The customer is a related party to Almonty holding beneficial ownership of securities of Almonty carrying more than 10 per cent of the voting rights attached to all of Almonty's outstanding voting securities. Accordingly, the entering into of the off-take agreement is deemed to be a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The off-take agreement is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to subsections 5.5(d) and 5.7(1)(c) as the transactions contemplated by the off-take agreement will consist of the purchase and sale in the ordinary course of business of the company of inventory consisting of personal or movable property of the company and the off-take agreement was approved by the board of directors of the company.
The transactions contemplated by the off-take agreement will not have any effect on the percentage of securities of Almonty beneficially owned or controlled by the customer.
Other than the off-take agreement as it relates to the customer, the company has not entered into any agreement with an interested party or a joint actor with an interested party in connection with the off-take agreement.
The board of directors unanimously approved entering into the off-take agreement on the basis that it represents an ag
Sign In
Follow the stocks
