Private PlacementAlmonty Announces Closing of $1.96 Million Brokered Private Placement Financing
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Wednesday, August 17, 2016 Almonty Announces Closing of $1.96 Million Brokered Private Placement Financing 16:05 EDT Wednesday, August 17, 2016 TORONTO (Business Wire) -- Almonty Industries Inc. (Almonty) (TSXV: AII) announces that it has closed its previously announced private placement of 5,600,000 of common shares at a price of $0.35 per common share for gross proceeds to Almonty of $1,960,000 (the Offering). The Offering was made in conjunction with the revised off-market takeover offer to be made by Almonty under the Australia Corporations Act 2001 (Cth) for all of the issued, and to be issued, shares of ATC Alloys Limited (ATC Alloys) announced by Almonty by press release dated July 26, 2016 (the ATC Transaction). All securities issued pursuant to the Offering are subject to resale restrictions for a period of four months and a day until December 18, 2016 as prescribed by the TSX Venture Exchange and applicable securities laws. Somers and Partners Pty Ltd acted as lead manager of the Offering. In aggregate, Almonty paid a commission of equal to $78,400 being 4% of the gross proceeds raised on the financing. Almonty intends to advance up to $250,000 of the net proceeds from the Offerings to ATC Alloys as a loan for its working capital purposes in connection with the previously announced ATC Transaction. The balance of any net proceeds from the Offering will be used for working capital and general corporate purposes. Lewis Black, Chairman, President & CEO stated This financing is another key milestone in the advancement of Almonty's strategy to become the dominant tungsten mining company outside of China and enables us to continue to move forward with the development of Sangdong. It also moves us closer to satisfying the financing condition of the ATC Transaction. We are working diligently to satisfy the remaining conditions precedent and to mailing the Bidder's Statement to ATC shareholders in due course.