Almonty's A$18.45 Million Equity Placement: A Boost for Balance Sheet and Growth

Almonty Industries Inc. (TSX: AII / ASX: AII / OTCQX: ALMTF) has secured final commitments for an A$18.45 million equity placement, a significant move that will help the company restructure its balance sheet and fund offer costs. The placement consists of 4.53 million Canadian units and 15.41 million CDI Units, priced at C$0.82 and A$0.90 per unit respectively. Each participant will receive one warrant for every common share issued and one free unlisted option for every one CDI issued, exercisable at C$1.14 and A$1.25 respectively, with an expiry date of three years from the date of closing.

The proceeds from the Placement will be applied towards restructuring the Company’s balance sheet and towards offer costs. The Canadian units and Placement CDI units are expected to settle on or before 04 February 2025, subject to TSX and ASX regulatory approvals. RM Corporate Finance Pty Ltd (“RM”) has acted as Lead Manager to the Placement and will be paid a fee of 6% on the portion of funds raised by RM.

Almonty's principal business 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 northwestern Spain.

The issuance of Canadian units and CDI Units brings several strategic values to Almonty's long-term growth prospects. Firstly, the funds raised from the placement will be used to improve Almonty's financial position by restructuring its balance sheet and covering the costs associated with the offer. This allows Almonty to strengthen its financial health and better position itself for future growth and operations. Secondly, the issuance of Canadian units and CDI Units provides Almonty with access to global capital markets, enabling the company to tap into a larger pool of investors and raise funds more efficiently. Lastly, the issuance of warrants and options along with the Canadian units and CDI Units can provide Almonty with the flexibility to raise additional capital in the future, if needed, by exercising the warrants and options.

In conclusion, Almonty's A$18.45 million equity placement is a strategic move that will help the company strengthen its financial position, access global capital markets, and provide flexibility for future capital raises. By restructuring its balance sheet and covering offer costs, Almonty is well-positioned to continue its growth and development in the tungsten mining and processing industry.