Almonty Industries: A Strategic Shift to the United States

Almonty Industries Inc. (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI), a leading global tungsten mining company, has announced its intention to relocate its jurisdiction of incorporation from Canada to the State of Delaware. This strategic move, referred to as a "US domestication," reflects the growing importance of the United States in Almonty's strategic positioning and the robust regulatory framework for critical materials like tungsten and molybdenum. The relocation is expected to enhance Almonty's long-term competitiveness and agility in a dynamic global market.

The US domestication is driven by several key factors, including the evolving global economic landscape, the growing importance of the United States in Almonty's strategic positioning, and the robust regulatory framework for critical materials. The State of Delaware was chosen as the new domicile due to the Delaware General Corporation Law (DGCL) expressly accommodating continuances under Section 192 of the Canada Business Corporations Act and its extensive body of corporate law. The DGCL provides well-defined guidance on the duties and obligations of directors and officers, offering legal clarity that is expected to benefit both the Company and its shareholders.

The relocation is expected to align Almonty's corporate structure with the location of a significant portion of its shareholder base, enhancing its ability to access key US markets. This move reinforces Almonty's strategic focus on growth and operational agility, ensuring the Company remains competitive and well-positioned to deliver value to stakeholders in an evolving global landscape. The ongoing global tensions, such as export restrictions in China, import duties by the United States, and restrictions on tungsten from China, Russia, Iran, and North Korea by the US Department of Defense, make the United States a compelling jurisdiction for Almonty's incorporation.



The US domestication is also motivated by the growing importance of the United States in Almonty's strategic positioning. The United States has a robust regulatory framework for critical materials like tungsten and molybdenum, which is beneficial for Almonty's operations. The evolving global economic landscape makes the United States a compelling jurisdiction for Almonty's incorporation.

The relocation process may present several regulatory and operational challenges, including regulatory approvals, compliance with the DGCL, shareholder approval, workforce transition, supply chain disruptions, currency fluctuations, and geopolitical tensions. However, by addressing these challenges effectively, Almonty can successfully complete its US domestication and enhance its long-term competitiveness and agility in the global market.

In conclusion, Almonty Industries' strategic shift to the United States is a well-thought-out move that aligns with the Company's long-term goals and the evolving global economic landscape. By relocating to the United States, Almonty is positioning itself to better access key US markets, enhance its operational agility, and remain competitive in a dynamic global market. Despite potential challenges, the US domestication is expected to benefit both the Company and its shareholders in the long run.