Business
Almonty Industries Inc. Announces it has Closed the Previously Announced Acquisition of the Wolfram Camp Tungsten and Molybdenum Mine From Deutsche Rohstoff AG for CAD$18.0 Million and USD$10.0 Million Financing
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About this update from Almonty Industries Inc.
[{"type":"text","content":"\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ \n\n\n\nTORONTO, Sept. 23, 2014 /CNW/ - Almonty Industries Inc. (\"Almonty\" or the \"Company\") (TSXV: AII) announces that on September 22, 2014 it closed the previously announced acquisition of 100% of both Wolfram Camp Mining Pty Ltd and Tropical Metals Pty Ltd (which collectively own 100% of the Wolfram Camp tungsten and molybdenum mine in Queensland, Australia (\"WCM\")) for CAD$18.0 million (the \"Acquisition\") from Deutsche Rohstoff AG (\"DRAG\").  The purchase price of CAD$18.0 million was satisfied as follows: \n\n\nAlmonty issued to DRAG 12,209,302 common shares at a value of CAD$0.86 per share that represents approximately CAD$10.5 million and translates into a shareholding of 24.9% of Almonty's total outstanding common shares. \nAlmonty issued a convertible debenture to DRAG in the principal amount of CAD$7.5 million.  The convertible debenture has a maturity of 2.5 years with a coupon of 4%. The convertible debenture may be converted, at the option of DRAG, into common shares of Almonty at a conversion price of CAD$1.45 per Almonty share. \nConcurrent with the closing of the Acquisition, Almonty entered into a new Supply Agreement with Global Tungsten & Powders Corp. (\"GTP\") for the output from WCM. \n\nAlmonty has also entered into a long-term US$10.0 million loan agreement with UniCredit Bank AG (\"UniCredit\"), whereby Almonty will utilize the loan proceeds to refurbish the operations of WCM and extend the mine life.  Funding from the loan is expected to provide sufficient capital to see the optimization of WCM through to positive cash flow.  Principal and interest under the loan is due to UniCredit under a balloon payment structure.  The loan carries an interest rate of LIBOR plus a spread of less than 2% and is indirectly guaranteed by GTP.  Should GTP repay some or all of the amounts owing under the loan agreement with UniCredit on Almonty's behalf, then GTP will have the right to be issued a convertible note in respect of such amounts.  The issuance of any such future convertible note will be subject to the prior approval of the TSX Venture Exchange. \n\nLewis Black, Chief Executive Officer of Almonty commented, \"We are pleased to have been able to close the acquisition of...