Almonty Industries Inc. (TSX-V:AII) (“Almonty”) announces that it has reached agreement with Global Tungsten & Powders Corp. (“GTP”) on the termination of a loan agreement pursuant to which Almonty was indebted to GTP in the amount of USD$7,043,128 (CAD$9,415,183) of principal and accrued interest.
As quoted in the press release:
Lewis Black, Chief Executive Officer of Almonty, commented, “GTP has been a loyal and highly valued customer and business partner of Almonty for years. The exchange of the outstanding loan owed to them at a price in excess of the current market price reflects the conviction of GTP that Almonty stock is currently undervalued. This marks the first time in the 95-year history of the GTP/Plansee Group taking a direct ownership position in a Tungsten concentrate producer. This new equity position reinforces our and GTP’s view of the longevity and solid foundation that Almonty is built upon and we can now count the largest consumer of Tungsten concentrate outside of China as a significant ongoing partner in the continuing development of the company and our Sangdong project. We look forward to an ongoing successful business relationship with GTP. Furthermore, the exchange of the loan to equity provides significant balance sheet relief to Almonty. This marks the commencement of our balance sheet improvement program now that we have completed the substantial consolidation of the non-Chinese Tungsten concentrate sector and prior to announcing the funding of our 100% owned Sangdong project. As our balance sheet improvement program continues to evolve we will notify the market accordingly.”