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Almonty Industries Inc. Announces Execution of Project Financing Loan Agreements and Project Guarantee Documents for Its Sangdong Mine in South Korea
TORONTO / Dec 07, 2020 / Business Wire / Almonty Industries Inc. (“Almonty” or the “Company”) (TSX:AII / OTCQX:ALMTF / Frankfurt:1MR) is pleased to announce the
About this update from Almonty Industries Inc.
[{"type":"text","content":"TORONTO / Dec 07, 2020 / Business Wire / Almonty Industries Inc. (“Almonty” or the “Company”) (TSX:AII / OTCQX:ALMTF / Frankfurt:1MR) is pleased to announce the execution of the Facility Agreement (loan agreement) and the Completion Agreement with KfW-IPEX Bank GmbH for the US$75.1 million project financing for its wholly-owned Sangdong Mine located in South Korea. In addition, the Company also announces the execution of a US$20 million Cost Overrun (“COG”) guarantee and the US$9.8 million Debt Service Reserve Account (“DSRA”) guarantee as required for the completion of the project financing and both provided by the Plansee Group. The US$20 million COG guarantee is an instrument in case of any cost overrun during the build and is in addition to the contingency already contained within the project finance budget. The US$9.8 million DSRA guarantee covers part of the required US$24 million equity raise required by the Company, leaving US$14.1 million of equity to be raised by the Company as the final material Conditions Precedent. The condition of the Plansee Group providing the COG and the DSRA guarantees to the Company, and in order to become the largest shareholder, Plansee Group will acquire a portion of Lewis Black’s stock in Almonty, as well as join the board of directors of the Company. The Company will now move to the closing of the Project Financing issuance of drawdown. Almonty’s Chairman, President and CEO Lewis Black commented: “After 4 years and 12 days, we have finally concluded the exhaustive and forensic process to secure a sub 3% variable rate financing pegged to libor for the build of the world’s flagship Tungsten project. I believe that the addition of the extra US$20 million COG guarantee ensures an even higher degree of security in successfully completing the build and further significantly reduces the risk profile for all shareholders. And just as importantly, the US$9.8m DSRA Guarantee is a non-dilutive and non-obligatory instrument which again is extremely important to retain shareholder value. The benefits to the Company and all the shareholders of these guarantees outweigh the personal cost of these guarantees. In short, the bigger picture is a bright value add future with our primary customer now joining the Board, committing a further US$29.8 million toward the build with these guarantees on top of the 1...