Mr. Lewis Black reports
SANGDONG DOWNSTREAM EXTENSION PROJECT PROGRESSING
Almonty Industries Inc. has provided an update in relation to the proposed nano tungsten oxide downstream processing plant.
As announced on March 30, 2022, Almonty is investigating the construction of a vertically integrated nano tungsten oxide downstream processing plant (Sangdong downstream extension project) to supply the South Korean battery anode and cathode manufacturing industry. As also announced, the financing for the Sangdong downstream extension project is expected to be sourced from KfW IPEX-Bank (KfW), the company's existing debt provider which has already executed a letter of intent (LOI) for up to $50-million (U.S.) of additional financing for this purpose.
Almonty is pleased to announce that it is consulting with IAF Holding GmbH, a process engineering firm that specializes in the design and construction of specialist processing facilities, to design and construct the Sangdong downstream extension project processing facility.
Almonty is also pleased to advise that it has determined that the Sangdong downstream extension project processing facility should be located at the Seok Moon industrial complex in South Korea. This site has been selected due to its excellent existing infrastructure, for example access to sufficient water, electricity, communications and gas, as well as existing environmental permitting.
In Q4 of this year, key board and staff members will visit the proposed location of the Sangdong downstream extension project, along with KfW and its independent consultants, Hatch, to progress the LOI to more definitive agreements.
The company looks forward to keeping shareholders informed as the Sangdong downstream extension project progresses.
Lewis Black chief executive officer comments:
"At site the underground mine development is still some six months ahead of schedule and our block model is proving to show we have taken an extremely conservative view. The deposit is clearly demonstrating to us why it is so revered within our industry. Equipment continues to arrive in country and the mills will begin assembly shortly and we are finalizing with the EPC regarding the detailed engineering study for the surface plant to then commence construction on surface. We are still comfortably within budget despite the inflationary pressures and we have successfully navigated these pressures by anticipating them early last year. The upcoming visit by KFW and Hatch is to view our progress so far at site and to view the potential new site for the tungsten oxide plant as we now accelerate that project.
"As for the recent stock activity, I want assure all shareholders that the company is on track, and we will make the third utilization request shortly to KfW. We are aware of some unusually aggressive selling from a European based individual/group who is not part of our core group.
"So as we now enter our next phase of our growth I would like to share with all shareholders a tungsten fact. There is 1.4 kg of tungsten used in the manufacturing or contained in every new EV. This is expected to increase to closer to two kg over the next three years as electrical components develop and could top out at 2.5 kg as tungsten-based cathode coatings in lithium-ion batteries are introduced."
About Almonty
Industries Inc.
The principal business of Toronto-based Almonty Industries is the mining, processing and shipping of tungsten concentrate from its Los Santos mine in western Spain and its Panasqueira mine in Portugal as well as the development of its Sangdong tungsten mine in Gangwon province, South Korea, and the development of the Valtreixal tin/tungsten project in northwestern Spain. The Los Santos mine was acquired by Almonty in September, 2011, and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January, 2016, and produces tungsten concentrate. The Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September, 2015, through the acquisition of a 100-per-cent interest in Woulfe Mining Corp. Almonty owns 100 per cent of the Valtreixal tin-tungsten project in northwestern Spain.
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