Deutsche Rohstoff AG: Almonty signs binding heads of agreement to sell the Wolfram Camp Mine
Almonty to become strategic shareholder of ATC Alloys LimitedHeidelberg/Toronto. Almonty Industries (DRAG share 13.2%) announced today that it has signed a binding heads of agreement to sell the Wolfram Camp Mine in Queensland / Australia. Potential buyer is ATC Alloys Limited, a company that operates the largest western ferrotungsten plant in Vietnam. Ferrotungsten which can be produced from Wolfram Camp tungsten concentrate is a precursor product for a variety of special steel applications.
The proposed consideration for the sale is 120 million fully paid ordinary shares in ATC Alloys at a deemed issue price of AUD 0.05 per share, or AUD 6.0 million plus the assumption of intercompany debt owed to Almonty by WCM. Upon completion of the transaction, Almonty will hold 53% of ATC Alloy's shares and will further be entitled to appoint two members to the Board of the company.
The completion of the acquisition is conditional on a positive due diligence outcome, the finalisation of legal documentation, third party lender approval as well as statutory, regulatory and other approvals that may be required by the parties. In addition ATC Alloys will require shareholder approval and has to successfully complete an equity raise of at least AUD 6.0 million.
Lewis Black, President and CEO of Almonty comments: "Almonty's proposed majority ownership in ATC Alloys will provide both Almonty and ATC shareholders with exposure to an expanded tungsten value chain that should enable ATC to attract the enhanced multiples awarded to specialty metal producer."
Detailed press releases and resource updates can be found on Almonty's website http://www.almonty.com.
Heidelberg, 26 April 2016
Deutsche Rohstoff identifies, develops and divests attractive resource projects in North America, Australia and Europe. The focus is on the development of oil and gas opportunities within the United States. Metals, such as gold, copper, rare earth elements, tungsten and tin complete our portfolio. For more information please visit www.rohstoff.de.
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Deutsche Rohstoff AG
Thomas Gutschlag
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info@rohstoff.de