Almonty Industries Inc. (TSX: AII) has declared that it has finished the third drawdown from the $75 million KfW IPEX-Bank loan facility for its Sangdong Tungsten Mine. The total amount drawn under the Loan Facility is $26.7 million. The Company stated that the drawdowns are being completed according to the schedule set out in the project drawdown agreement.
KfW IPEX-Bank GmbH, a German state-owned bank, has provided a Loan Facility of $75 million to finance the Sangdong Mine project. The loan conditions benefit the Company, and the Sangdong Mine is predicted to be up and running well before the loan is due to be repaid.
Almonty’s Chairman, President, and CEO, Lewis Black, commented: “Almonty has been given the third drawdown from its financing partner KfW IPEX-Bank for its $75 million project credit. In October 2022, KfW IPEX-Bank representatives, Plansee/GTP offtake partner, and independent consultants Hatch went to the Sangdong Tungsten Mine to review the construction progress and explore ways to be involved in the battery anode and cathode and semiconductor production business.”
Almonty has inked a letter of intent with KfW IPEX-Bank to finance up to $50 million of the downstream processing venture. The robust tungsten price, combined with the firm’s floor price protection in its agreement with Plansee GTP, is expected to yield gains for shareholders once the commissioning takes place in 2023.