Almonty Industries (TSXV:AII) and Woulfe Mining (CSE:WOF) have entered a non-binding letter of intent to combine the two companies and create the leading tungsten producer outside of China. Under the terms of the merger, Almonty would purchase all outstanding shares of Woulfe at a price of $0.08 per share.

As quoted in the press release:

The combined business (“MergeCo”) will have two producing tungsten assets located in Spain and Australia, pre-construction assets in South Korea and Spain, and serve as an attractive platform for further accretive growth and consolidation in the global tungsten sector. Completion of the Merger is subject to completion of due diligence process by both companies, expected to be completed within the next 30 days, and the satisfaction of certain conditions discussed below.

Almonty president and CEO, Lewis Black, said:

This transaction represents the opportunity to combine one of the world’s most promising undeveloped tungsten asset with our significant portfolio of producing assets, to create a truly global tungsten powerhouse. Almonty has already established itself as a leading producer of tungsten outside of China and premier consolidator of global tungsten assets. With the addition of Woulfe’s flagship Sangdong mine, we are confident about the combined team’s ability to unlock significant value from our collective assets for our combined shareholders.

Click here to read the Almonty Industries (TSXV:AII) press release