Almonty Up on US$76 Million Financing for Sangdong Tungsten Mine
Almonty’s share price jumped late last month following news that it has secured US$76 million for its Sangdong tungsten mine.
Shares of Almonty Industries (TSX:AII,OTCQX:ALMTF) have been on an uptrend since the start of the year, rising more than 36 percent since January.
The company’s share price jumped late last month following news that it has secured US$76 million for the development of its Sangdong tungsten mine in Gangwon province, South Korea.
Canada-based Almonty received a binding commitment letter from German KfW IPEX-Bank for the funding to develop the project, which, according to the company’s CEO, is now in a position to be built.
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“With this announcement our 100 percent owned Sangdong project will now be built,” CEO Lewis Black said. “This project will reclaim its title as the world’s largest tungsten mine and will be showcase of South Korea’s 21st century technology.”
The past-producing Sangdong mine has reserves of 7.89 million tonnes grading 0.47 percent tungsten trioxide, equivalent to 37.1 kilotonnes contained tungsten trioxide. Indicated resources sit at 8.3 million tonnes at 0.49 percent tungsten trioxide, equivalent to 40.8 kilotonnes contained tungsten trioxide.
“Sangdong is expected to be one of the largest capacity mine projects built in recent years with a design capacity of nearly 3.6 kilo tonnes per year contained tungsten,” Roskill said in a report.
China, the world’s largest producer of tungsten, accounted for more than 80 percent of mine output in 2019, or some 61,000 tonnes of contained tungsten metal, according to Roskill.
Once development construction at the mine is done, Almonty’s Sangdong will become the second largest tungsten mine in terms of capacity outside of China. The first spot is held by Masan Resources’ Nui Phao in Vietnam, which has an estimated reserve of 66 million tonnes.
In 2019, Almonty signed an offtake agreement for 10 years with company shareholder Global Tungsten and Powders for a total of 21,000 tonnes of tungsten trioxide — almost 90 percent of planned output.
Aside from Sangdong, Almonty has interests in the Los Santos mine and Valtreixal in Spain, and it owns a 100 percent interest in the Panasqueira tin-tungsten mine in Portugal.
After having a tough 2019, Almonty’s share price is back in the green. Starting the year at C$0.41, the company has made its way up to C$0.56, where it was sitting on Tuesday (February 4). Despite being a long way from its all-time high of C$1.10, reached in April 2019, the company’s share price is now far from its all-time low of C$0.22, hit in August 2017.
Image via Almonty Industries.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.