Almonty Industries Inc. has provided an update regarding its US$75 million Project Financing with the KfW-IPEX Bank for its wholly-owned Sangdong Mine.
The Company reports that it is has now finalized the completion agreement with KFE- Ipex Bank.. Finalization of the Facility Agreement is now expected to follow imminently and the Conditions Precedent (“CP”) list is now over 60% complete.
Almonty’s Chairman, President and CEO Lewis Black commented:
“This Represents the first step of closing for the libor plus 2.4% debt financing of our 100% owned Sangdong project. The next phase is the facility agreement which will follow shortly on from the completion agreement and then finally the compilation and population of the CP list. At that point the loan facility will then close. We remain on track at site with the construction of the Monty B portal commencing mid September and now we have added the road and drainage diversion project which will also commence at the same time. We expect to update the market further on the non dilutive equity piece shortly and I am personally looking forward to closing this transaction to commence the full build of the worlds largest tungsten mine and driving future growth through the continued expansion of the production at our Sangdong tungsten project and then on to the full development of our deep Moly project located 150m from our existing infrastructure.”
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 and its Panasqueira mine in Portugal as well as the development of its Sangdong tungsten mine in Gangwon Province, South Korea and the development of the Valtreixal tin/tungsten project in north western Spain.
The Los Santos mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate.
The Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September 2015.