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Deutsche Rohstoff AG: Almonty Industries places takeover bid for ATC Alloys

DGAP-News: Deutsche Rohstoff AG / Key word(s): Offer/Quarter Results
Deutsche Rohstoff AG: Almonty Industries places takeover bid for ATC Alloys

31.05.2016 / 07:45
The issuer is solely responsible for the content of this announcement.

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Deutsche Rohstoff AG: Almonty Industries places takeover bid for ATC Alloys
Cash inflow of CAD 6.5 million for Almonty

Heidelberg. Almonty Industries (DRAG share 13.26%) and the Australian
company ATC Alloys Limited jointly announced today that Almonty has decided
to place an offer to acquire all outstanding shares of ATC Alloys,
deviating from a first agreement made in April. ATC is listed at the
Australian Stock Exchange ("ASX"). The management of ATC Alloys supports
the transaction and has already agreed to sell its shares. The shareholders
of ATC receive Almonty shares in return. Almonty will be evaluated with CAD
0.40 per share as part of the transaction. The acquisition is subject to
various conditions.

With the acquisition of ATC Alloys, Almonty will further expand its
tungsten business and integrate downstream tungsten processing capacity to
the groups portfolio. ATC holds a 60% stake in the Vinh Bao Ferrotungsten
production facility in Vietnam. This plant is the largest of its kind
outside of China and has a production capacity of 4,000 tons Ferrotungsten
per year. Input materials for Ferrotungsten are tungsten concentrate and
iron ore. The material is mainly used in steel alloys in order to obtain
high heat resistance and hardness.

As part of the transaction, Almonty will conduct a secondary listing on the
Australian ASX and raise further capital. A first capital increase of CAD
1.5 million will be carried upon signing a preliminary agreement. For a
second capital increase of AUD 5.25 million Almonty will receive an
underwriting agreement by a well known financial institution at the same
time. It will be carried out upon completion of the transaction, which is
expected in the third quarter of 2016.

Furthermore, Almonty announced its quarterly financials and the financials
for the first half of the fiscal year 2015/2016 (31 March 2016). For the
quarter, Almonty generated sales of CAD 10.4 million (half year CAD 18.58
million). Due to the lower tungsten prices, Almonty posted a net loss of
CAD 4.47 million (half year net loss of CAD 9.71 million).

Lewis Black, CEO of Almonty Industries, said: "We are delighted to be able
to place the bid for ATC Alloys, which opens further prospects in the
downstream processing of our concentrate. We anticipate that the ASX
listing associated with the Transaction will promote enhanced trading
liquidity and greater investor interest in Almonty.

Our quarterly results also reflect the low point of the prices for
tungsten, which amounted to USD 175/mtu at the end of March. Meanwhile,
prices recovered again to over CAD 210. We expect that our cost reductions
and measures within recent months will pay off in an improved pricing
environment."

A detailed version of both press releases can be found on the Almonty
Industries website at: http://www.almonty.com

Heidelberg, 31 May 2016

Deutsche Rohstoff identifies, develops and divests attractive resource
projects in North America, Australia and Europe. The focus is on the
development of oil and gas opportunities within the United States. Metals,
such as gold, copper, rare earth elements, tungsten and tin complete our
portfolio. For more information please visit www.rohstoff.de.

Contact:

Deutsche Rohstoff AG
Thomas Gutschlag
Tel. [phone]
[e-mail]


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31.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language: English
Company: Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24
69117 Heidelberg
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.rohstoff.de
ISIN: DE000A0XYG76, DE000A1R07G4,
WKN: A0XYG7, A1R07G
Indices: Entry Standard (Performance TOP 30)
Listed: Regulated Unofficial Market in Berlin, Dusseldorf,
Stuttgart; Open Market (Entry Standard) in Frankfurt


End of News DGAP News Service
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467687 31.05.2016