Almonty Industries Inc. Announces Receipt of Binding Commitment for US$76 Million Sangdong Mine Project Financing
Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / OTCQX: ALMTF / Frankfurt: 1MR) is pleased to announce that it has received a Binding Commitment Letter for US$76,000,000 from KfW IPEX–Bank GmbH (“the “Bank”), the Lender, for the proposed project financing for the development and operation of Almonty’s Sangdong Mine in South Korea.
The general terms of the binding commitment approved by the credit committee of KfW IPEX-Bank GmbH include:
- The principal amount of senior project finance loan to be US$76 million;
- Interest rate:Three month LIBOR plus 2.5% and borrower expects this to reduce on issuance of the ECA cover.
- Term of 6.25 years with an initial principal repayment holiday during construction and quarterly instalment repayments of principal commencing after the second anniversary of the initial drawdown; and
- Oesterreichische Kontrollbank AG (“OeKB”), is committed to providing a Import Credit Scheme cover guarantee based on the previously announced long term offtake agreement.
Lewis Black, Chief Executive Officer of Almonty, commented, “As the largest shareholder in Almonty, I am extremely pleased to finalize a financing package for the development of Sangdong. With this announcement our 100% owned Sangdong project will now be built. This project will reclaim its title as the world’s largest Tungsten mine and will be a showcase of South Korea’s 21st century technology involving some of the largest Korean companies and government organizations such as POSCO, KIGAM (Korea Institute of Geoscience & Mineral Resource), MIRECO (Mine Reclamation Corp), KORES (Korea Resource Corp), KEPCO (Korea Electric Power Corp) and KT (Korea Telecom) to name but a few. The project meets the demands of the 21st century in the sustainable approach that has been taken and will be a carbon neutral operation benefiting from renewable energy provided by KEPCO. The project also conforms to equator principles which is used by financial institutions to assess a project for environmental and social risk. Full advantage will be taken to benefit from the extraordinary digital infrastructure that exists in South Korea and the project will be used to promote the Health and Safety standards of Korea which are amongst the highest in the world. The project will now be in a condition to meet the 21st century demands of its customer base to provide a transparent, environmentally and socially compliant, carbon neutral and a stable supply chain based in one of the top developed countries in the world. The support of the local community and local and regional Government in Korea, GTP and the Plansee Group, KfW IPEX-Bank GmbH and OeKB has been integral in reaching this point."