IMC and Deutsche RohstoffIn this 3 months old interview Black outlines his strategy vs. IMC quite clearly and so far he has been consistent. https://investingnews.com/daily/resource-investing/critical-metals-investing/tungsten-investing/almonty-finally-gets-a-piece-of-woulfe-minerals-whats-next/
With respect to IMC, Black said: “I would imagine that IMC will see what has happened favorably because when I go to their office, it will be the first time that they will have sat across the desk from someone that has successfully operated tungsten operations,” ... “I feel that IMC has only ever wanted to see supply. So I am not expecting a hero’s welcome, but I think now that once we have closed the deal my first port of call is to go to meet with IMC and have this conversation as to what they want and what they expect from Sangdong.” ... “It is really getting to know our clients, and IMC is currently a client of Sangdong.” ... “Traditionally, we have commanded the highest prices for our off-takes because of our reliability and the consistency of our material. But we have never, in fact, gone to an off-taker to look for funding. We feel that we are responsible for our business and they are responsible for theirs. Our relationship is that we deliver to them on time and to spec, and they pay us on time. And that is, I believe, the most positive relationship you can have between a supplier and a customer."
Elsewhere in the interview, Black said that Almonty has access to capital, and the news today certainly bear that out. Looks like the go-to guys for Almonty are Deutsche Rohstoff AG ("DRAG"). Yesterday's announced 8M financing through low-interest convertibles, share placement and unsecured bridge loan allows DRAG to keep the same ownership of Almonty as prior to the Woulfe acquisition (24%). The placements and convertibles were done at 81c, which should provide a near term reference point for the Almonty stock price. Deutsche Rohstoff (German Commodity) is a diversified developer of mining and energy resources (about USD 100M market value). They appear to be successful and capable to hold to profitability even in such dismal times as current by "identifying, developing and divesting attractive resource projects in North America, Australia and Europe". DRAG site has lots of material --- https://rohstoff.de/en/
Given that Almonty plans to pay back half the loan on due date and the rest in 6 months, my reading is that IMC will be the Sangdong off-taker ("strategic partner" as mentioned in the July presentation - https://www.almonty.com/_resources/presentation/Almonty_Presentation_July_2015_v2.pdf), but construction of the mine will be financed separately. Given the nature and history of the Sangdong mine, I believe the Korean banks can finance the construction regardless of the contribution from IMC, as long as an off-take deal is obtained. Negotiating financing and off-take deals separately would make business sense and will likely produce better deals for the company on both.