Business
Almonty Industries Inc. announces it has entered into a binding agreement to acquire the Wolfram Camp tungsten and molybdenum mine from Deutsche Rohstoff AG for CAD$18.0 Million
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About this update from Almonty Industries Inc.
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE\n UNITED STATES/\n\n\nTORONTO, June 30, 2014 /CNW/ - Almonty Industries Inc. (\"Almonty\" or the\n \"Company\") (TSXV: AII) announces that it has entered into a binding\n Letter Agreement ( the \"Agreement\") with Deutche Rohstoff AG (\"DRAG\") to acquire 100% of both Wolfram Camp Mining Pty and Tropical Metals\n Pty.  (which collectively own 100% of the Wolfram Camp tungsten and\n molybdenum mine in Queensland, Australia \"WCM\") for CAD$18.0 million ( the \"Acquisition\").  The Agreement calls for the purchase price of CAD$18.0 million to\n be satisfied as follows:\n\n\n\nAlmonty will issue approximately 12,209,302 million common shares at a\n value of $0.86 per share that represent approximately CAD$10.5 million\n and translate into a shareholding of Almonty`s issued stock of 24.9%\n following completion of the acquisition.\n\n\nThe remaining purchase price of approximately CAD$7.5 million will be\n satisfied by Almonty issuing a convertible debenture to DRAG.  The\n convertible debenture will have a maturity of 2.5 years with a coupon\n of 4%. The convertible debenture may be converted, at the option of\n DRAG, into shares of Almonty at a conversion price of CAD$1.45 per\n Almonty share.\n\n\n\nCompletion of the Acquisition will be conditional on approval by the TSX\n Venture Exchange and approval of Almonty shareholders.\n\n\nLewis Black, Chief Executive Officer of Almonty commented, \"We are\n pleased to have been able to reach an agreement with DRAG to acquire\n the Wolfram Camp mine, almost doubling the size of Almonty's tungsten\n operations.  WCM is currently producing to similar levels that were\n being produced at the Los Santos Project when we acquired it in 2011.\n We expect to be able to replicate the success we have enjoyed at the\n Los Santos Project at WCM over a shorter time frame.  WCM is a\n wolframite producing mine which we consider to be similar in many\n respects to the Panasqueira project that was previously successfully\n renovated and subsequently sold by the current Almonty management team\n when it was held by Primary Metals Inc.   Our technical team, having\n spent the majority of their careers working with wolframite ore, and\n now scheelite ore at the Los Santos Project, is highly confident...