Almonty Industries Inc. announced that it has entered into a new off-take agreement with an existing customer for the purposes of mining tungsten concentrate.
Almonty Industries Inc. (TSXV:AII) announced that it has entered into a new off-take agreement with an existing customer for the tungsten concentrate to be mined and processed at the company’s Sangdong tungsten mine in South Korea.
As quoted in the press release:
The agreement has a term of 10 years and, based upon current pricing models and, subject to the terms and conditions of the agreement, the agreement calls for guaranteed revenues for the Company for a minimum of CDN$500,000,000.
Lewis Black, CEO of Almonty commented:
We are pleased to have been able to negotiate and execute the single largest underwritten minimum revenue guaranteed supply agreement in the modern era in Tungsten for our wholly-owned Sangdong Mine. We now have total downside protection for our output and no cap on the upside ensuring the long-term viability of the Sangdong Mine regardless of market conditions. This agreement is testament to the strength and long-term viability of the project and the Almonty operating team. We believe that the outcome of this agreement in conjunction with our other operating and development Tungsten assets will ensure our continuing market dominance as a Western-based Tungsten producer for many years to come.