Proposed Extension of Share Purchase Warrants

Rhea-AI Summary

Almonty Industries (TSX: AII / ASX: AII / OTCQX: ALMTF) has announced plans to extend the term of 700,000 outstanding share purchase warrants held by insiders Lewis Black and Dr. Thomas Gutschlag. The extension would move the expiry date from February 19, 2025, to February 19, 2026, subject to TSX and shareholder approval.

These warrants originated from a private placement conducted between December 2019 and February 2020, where the company issued 2,047,244 units comprising shares and warrants exercisable at $0.75 per share. Of the original warrants, 1,020,000 expired, 327,244 were exercised, and 700,000 remain outstanding. The company has previously received approval to extend these warrants twice, first to February 19, 2024, and then to February 19, 2025.

Positive

• None.

Negative

• Warrant extension indicates potential delay in capital raising
• Extension of insider warrants may signal lack of confidence in near-term share price appreciation

TORONTO--(BUSINESS WIRE)-- Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) announces that it plans to extend, in the aggregate, the term of 700,000 outstanding share purchase warrants (the “Insider Warrants”) that were due to expire on February 19, 2025, by one year. On February 7, 2025, the Board of Directors of the Company approved to extend the Insider Warrants held by Lewis Black and Dr. Thomas Gutschlag to February 19, 2026, subject to Toronto Stock Exchange (“TSX”) and shareholder approval. Lewis Black and Dr. Thomas Gutschlag are insiders of the Company.

During December 2019 through February 2020, the Company conducted a private placement whereby it closed, in three tranches, 2,047,244 units which consisted of 2,047,244 shares and 2,047,244 share purchase warrants, exercisable at a price of $0.75 per share with a three-year term. Of the 2,047,244 warrants issued, 1,020,000 expired, 327,244 were exercised and 700,000 remain outstanding which were due to expire on February 19, 2023. During 2023, the Company received TSX approval and shareholder approval at its annual general meeting held on June 26, 2023, to extend the expiry date of those warrants to February 19, 2024. Additionally, during 2024, the Company received TSX approval and shareholder approval at its annual general meeting held on June 28, 2024, to extend the expiry date of those warrants to February 19, 2025. Pursuant to Section 608(a) of the TSX Policy Manual, amendments to warrants held by insiders, as well as warrants that are in-the-money require disinterested shareholder approval. The Company will be seeking disinterested shareholder approval to the extension of the Insider Warrants at its next annual general meeting.

Other than the extension of the expiry date for the Insider Warrants, all other terms and conditions would remain unchanged.

The amendment of the Insider Warrants is considered a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). As such, the Company would rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that number of warrants being amended by insiders will not exceed 25% of the fair market value of the Company’s market capitalization.

About Almonty

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 northwestern 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, is 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 through the acquisition of a 100% interest in Woulfe Mining Corp. Almonty owns 100% of the Valtreixal tin-tungsten project in north- western Spain. Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s profile at www.sedarplus.ca.

Legal Notice

The release, publication, or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published, or distributed should inform themselves about and observe such restrictions.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. These statements and information are based on management’s beliefs, estimates and opinions on the date that statements are made and reflect Almonty’s current expectations.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Almonty to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: any specific risks relating to fluctuations in the price of ammonium para tungstate (“APT”) from which the sale price of Almonty’s tungsten concentrate is derived, actual results of mining and exploration activities, environmental, economic and political risks of the jurisdictions in which Almonty’s operations are located and changes in project parameters as plans continue to be refined, forecasts and assessments relating to Almonty’s business, credit and liquidity risks, hedging risk, competition in the mining industry, risks related to the market price of Almonty’s shares, the ability of Almonty to retain key management employees or procure the services of skilled and experienced personnel, risks related to claims and legal proceedings against Almonty and any of its operating mines, risks relating to unknown defects and impairments, risks related to the adequacy of internal control over financial reporting, risks related to governmental regulations, including environmental regulations, risks related to international operations of Almonty, risks relating to exploration, development and operations at Almonty’s tungsten mines, the ability of Almonty to obtain and maintain necessary permits, the ability of Almonty to comply with applicable laws, regulations and permitting requirements, lack of suitable infrastructure and employees to support Almonty’s mining operations, uncertainty in the accuracy of mineral reserves and mineral resources estimates, production estimates from Almonty’s mining operations, inability to replace and expand mineral reserves, uncertainties related to title and indigenous rights with respect to mineral properties owned directly or indirectly by Almonty, the ability of Almonty to obtain adequate financing, the ability of Almonty to complete permitting, construction, development and expansion, challenges related to global financial conditions, risks related to future sales or issuance of equity securities, differences in the interpretation or application of tax laws and regulations or accounting policies and rules and acceptance of the TSX of the listing of Almonty shares on the TSX.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, no material adverse change in the market price of ammonium para tungstate (APT), the continuing ability to fund or obtain funding for outstanding commitments, expectations regarding the resolution of legal and tax matters, no negative change to applicable laws, the ability to secure local contractors, employees and assistance as and when required and on reasonable terms, and such other assumptions and factors as are set out herein. Although Almonty has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary.

Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying on Almonty’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

Almonty has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD- LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE ALMONTY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250214499630/en/

For further information, please contact:

Lewis Black

Chairman, President and CEO

Telephone: +1 647 438-9766

Email: info@almonty.com

Source: Almonty Industries Inc.

FAQ

How many ALMTF warrants are being extended in 2025?

700,000 share purchase warrants held by insiders are being extended from February 19, 2025, to February 19, 2026.

What is the exercise price of ALMTF's outstanding warrants?

The warrants are exercisable at a price of $0.75 per share.

How many warrants were originally issued in ALMTF's 2019-2020 private placement?

The company originally issued 2,047,244 warrants as part of its private placement between December 2019 and February 2020.

Who are the ALMTF insiders holding the warrants being extended?

The warrants being extended are held by Lewis Black and Dr. Thomas Gutschlag, who are insiders of the company.

What approvals are needed for ALMTF's warrant extension?

The warrant extension requires both Toronto Stock Exchange (TSX) approval and disinterested shareholder approval at the next annual general meeting.