Successful Placement of CDI’s Raises A$3.5 Million

Rhea-AI Summary

Almonty Industries Inc. (OTCQX: ALMTF) has secured firm commitments from Australian institutional investors to raise A$3.5 million through the issuance of 4,861,111 Chess Depository Interests (CDIs) at A$0.72 each. Participants will receive one free unlisted option per CDI issued, exercisable at A$1.25 until December 31, 2024. Funds will be used for debt repayment, working capital, and offering costs. Additionally, the company settled US$2.46 million owed to Plansee Holdings AG by issuing 4,501,840 common shares at an average price of $0.73, a 6% premium. The transaction awaits regulatory approval.

Positive

• Secured A$3.5 million funding to strengthen financial position.
• Issued shares at a premium to current market price, indicating strong investor interest.

Negative

• Debt repayment indicates existing financial obligations.
• Related party transaction raises potential conflict of interest concerns.

TORONTO--(BUSINESS WIRE)-- Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: ALI) is pleased to announce that the Company has received firm commitments, primarily from existing Australian institutional investors, to raise gross proceeds of A$3.5 million via the issue of 4,861,111 million Chess Depository Interests (“CDIs”) at A$0.72 per CDI (“Placement”).

Each Placement participant will be issued with one (1) free unlisted option for every one (1) CDI issued, exercisable at A$1.25 with an expiry date of 31 December 2024 (“Options”).

Proceeds from the Placement will be applied towards repayment of a convertible note (for which the lender was not able to extend the debt instrument due to previous commitments), general working capital and offer costs.

The issue price of A$0.72 is equal to the last price of Almonty on 17 March 2023 of A$0.72.

The Placement CDI’s and Options are expected to settle on or about Monday 27 March 2023. The Placement CDI’s issued will rank equally with existing CDI’s and common shares of the Company (“Common Shares”) on issue.

The closing of the Placement is subject to receipt of all necessary regulatory approvals, including the acceptance by the TSX and ASX.

RM Corporate Finance Pty Ltd acted as Lead Manager to the Placement and will be paid a total fee of 6% of the gross proceeds raised in the Placement.

Additionally, the Company announces that it has received conditional approval from the TSX to settle the fees linked to various guarantees provided in respect of Company debt obligations in stock rather than cash at the request of Plansee Holding AG (“Plansee”). The amount due to Plansee of US$2,455,371.28 (CAD$3,287,742.14) was settled through the issuance of 4,501,840 Common Shares. The average price of the stock issuance is $0.73 per share representing a 6 % premium to current market price.

Plansee, through the holdings of its subsidiary, Global Tungsten & Powders Ltd., is an insider of the Company by virtue of holding 10% or more of the Company’s issued and outstanding Common Shares. As such, issuance of Common Shares to Plansee Holdings AG in satisfaction of obligations owed thereto constitutes a related party transaction as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. However, the Company considers such transaction would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the Common Shares issued to Plansee and the dollar value of the obligations owed thereto, would not exceed 25 percent of the Company's market capitalization.

Other than a debt settlement agreement entered into between Plansee and the Company relating to the issuance of the Common Shares in settlement of obligations due to Plansee, the Company does not anticipate entering into any agreement with an interested party or a joint actor with an interested party in connection with the transaction with Plansee.

The Company did not file a material change report more than 21 days before the issuance of the Common Shares because the Company has been seeking all regulatory and third party approvals for the transaction with Plansee and, once received, moved to close on an expedited basis for business reasons.

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 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, 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.sedar.com.

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/20230322005799/en/

Lewis Black

Chairman, President and CEO

+1 647 438-9766

info@almonty.com

Source: Almonty Industries Inc.

FAQ

What is the purpose of Almonty's recent fundraise of A$3.5 million?

The funds will be allocated for debt repayment, general working capital, and offering costs.

What price did Almonty Industries set for its CDIs in the recent placement?

The CDIs were issued at A$0.72 each.

Who will receive options in the recent placement by Almonty Industries?

Each participant in the placement will receive one free unlisted option for every CDI issued.

What is the expiry date for the options provided in the Almonty placement?

The options will expire on December 31, 2024.

What company is involved in the related party transaction with Almonty Industries?

The transaction involves Plansee Holdings AG, which is an insider due to its significant shareholding.