Post by
chizzles on Feb 06, 2022 7:23pm
News
https://newswire.iguana2.com/af5f4d73c1a54a33/aii.asx/6A1075974/AII_Drawdown_of_Kfw_US$75m_Loan_Imminent
DRAWDOWN OF KfW US$75 MILLION LOAN IMMINENT FOLLOWING SATISFACTION OF ALL CONDITIONS PRECEDENT Toronto – February 7, 2022 - Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / ASX: AII / OTCQX: ALMTF / Frankfurt: 1MR) is pleased to announce an update in relation to the KfW US$75.1 million loan facility. Almonty advises that it is in receipt of the completion of conditions precedent letter from KfW. Almonty has now satisfied all of the 110 conditions precedent. Once the balance of the equity has been transferred to the loan account held in Korea by Almonty Korea Tungsten Company (AKTC) and the payment of various financing fees is completed, which are customary to project finance lending, the bank can then move to issuing the drawdown letter and the first drawdown will commence. Almonty’s Chairman, President and CEO Lewis Black commented: “This is a monumental occasion for Almonty and its shareholders, with the drawdown of the KfW US$75.1 million loan now imminent after approximately five years of hard work, due diligence and co-operation by all stakeholders. The completion of the loan for US$75.1 million from KfW means that the largest tungsten mine outside of China, with one of the highest grades in the world and located in South Korea, the largest per capita user of Tungsten globally, is now positioned to complete construction as intended. I firmly believe this has been worth the effort and patience required by shareholders, with the KfW loan facility attracting very low interest rates, with an all-in cost expected to be approximately 2-3%. The quality of the lender and their ongoing support for our continued growth will be a decisive factor for Almonty’s continued success and will allow us to respond to the changing demand dynamics that we are now witnessing within the technology sector. The timing of the drawdown could not come at a better time from a tungsten market perspective, with the tungsten price up 45% in the past 12 months to US$338 per MTU, at a time when we are experiencing increasing demand from sources outside of China, particularly in the South Korean and EU semiconductor and battery sectors. We are currently approximately 15% through total construction of Sangdong and now, with drawdown of the KfW loan, the Company can accelerate construction towards commissioning which is on track for Q4 CY 2022. Our underground development is over 27% complete and is already 6 months ahead of schedule. I am immensely pleased that we decided at Almonty to secure and fix pricing last year on much of the equipment on order which has shielded us from more recent inflationary equipment price rises.” The general terms of the loan facility approved by the credit committee of KfW-IPEX include: 1. The principal amount of senior project finance loan to be US$75.1 million; 2. Interest rate -- three-month London interbank offered rate (LIBOR), plus 2.5 per cent. LIBOR will be replaced by SOFR. (Secured Overnight Financing Rate); 3. 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 4. Oesterreichische Kontrollbank AG (OeKB) is committed to providing an import credit scheme cover
Comment by
lonade on Feb 07, 2022 1:08am
DRAWDOWN OF KfW US$75 MILLION LOAN IMMINENT FOLLOWING SATISFACTION OF ALL CONDITIONS PRECEDENT i cant believe reading this...lol great day for all shareholders and congrats to lewis and his team for their tiresome efforts! it's been a loooong wait, but as always for the really decisive things life, well worth it!
Comment by
TechOne on Feb 07, 2022 1:56am
Notice that it has tomorrow's date for this news release.. You won't find this release yet on either yahoo, linkedin.com or on company's website.. Good job stumbling on it earlier.. Should be interesting tomorrow when we do get wider circulation.. FWIW
Comment by
lonade on Feb 07, 2022 1:59am
the NR was issued on the ASX for now. as usual, there will be another one coming on the TSX before market opens and that will reach the wider investing community
Comment by
lonade on Feb 07, 2022 2:00am
https://hotcopper.com.au/threads/ann-drawdown-of-kfw-us-75m-loan-imminent.6569897/
Comment by
GaiusGermanicus on Feb 07, 2022 6:30am
Some might have called it 5 years of delay, but for me it was 5 more years to accumulate to my position. Could be we'll finally see the volume establish enough of a market for the shares to find out if it was worth it. I made it to ~ 0.17% of the company first though! That's a fairly good share of the worlds tungsten production for one guy!