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Almonty Industries Inc T.AII

Alternate Symbol(s):  ALMTF

Almonty Industries Inc. is a Canada-based company, which is engaged in the mining, processing and shipping of tungsten concentrate, as well as the exploration and evaluation of its projects. The Company operates through four segments: Los Santos Mine, Panasquiera Mine, Valtreixal Project, and Woulfe. The Los Santos Mine is located in Spain whose operations relate to the exploration and mining of Tungsten. The Panasqueira Mine is located in Covilha Castelo Branco, Portugal, whose operations relate to the exploration and mining of tungsten, as well as the production of copper and tin concentrate by-products. The Valtreixal Project is located in Spain whose operations relate to the exploration and evaluation activities of the Valtreixal tin/tungsten project. Woulfe’s properties are located in Gangwon Province, Republic of Korea. The Woulfe's operations relate primarily to the exploration, evaluation and development of the Sangdong Project.


TSX:AII - Post by User

Bullboard Posts
Post by 74volframon Oct 24, 2017 6:33pm
221 Views
Post# 26853233

Equity financing at Sangdong

Equity financing at SangdongIt looks like 8.7M USD are in at this point, and 11.3M are needed to complete the Almonty share of financing (20M USD). Remains to be seen how this will be accomplished, as Almonty has stated no further equity financing is anticipated prior to the announcement of completion of funding. 

Collectively junior miners have very bad reputations for very good reasons. But Almonty clearly wants to move away from junior league and will need to be better than usual typecast. So I will take them at their word that they are not going to issue 11.3M USD worth of new shares. technically "not prior-to" but really "at-the-same-time-as" signing the Sangdong financing.  

Issuing and selling new shares is only one way to raise cash for a company. It is the easiest way, but in the end it is also the most expensive way. If the company is viable (like cash flow positive or better) and has a desirable product, then there are much better ways to raise cash, and the sale of shares if it happens will be done mostly to insiders at favorable terms.

My opinion here: Almonty could raise cash to complete the terms of financing
 against future profits from the off-taker, who is also a large shareholder. Forgoing a part of future profits, for a short time, in order to avoid permanent dilution is usually a good deal in a loan if one can get that. and I believe Almonty already has a similar arrangement on some of its long-term debt.  Could be such or similar deal is planned to close the financing.
Bullboard Posts