There is clearly no lack of interest in tungsten these days, as Almonty Industries (TSXV:AII) evidenced on December 11. The Toront0-based mining company just announced a memorandum of understanding (MoU) with specialty products, tungsten and molybdenum manufacturer Global Tungsten & Powders (GPT) for up to US$20 million for the acquisition/build-out of and off-take commitment for a portion of the output from a project Almonty hasn’t even acquired yet. Evidently, GTP is bullish on the tungsten market, and has faith in Almonty’s abilities as a tungsten producer.
Almonty is currently scoping out potential tungsten projects in various stages of due dilligence. As far as the MoU is concerned, definitive terms and the financing and off-take commitments will be finalized once Almonty has acquired its next tungsten project. Almonty is currently operating the Los Santos tungsten project in western Spain, which it acquired in 2011. Los Santos is located within 200 kilometers of its the company’s former Panasqueira tungsten mine in Portugal. The was opened in 2008 by its former owner and commissioned in 2010. By 2011, annual output had risen to roughly 441,976 tonnes of ore at a grading of 0.27%WO3.
According to Almonty’s CEO, Lewis Black, ”[w]e are pleased to have been able to have reached an understanding with GTP, one of the world’s largest consumers of tungsten concentrate, with respect its willingness to back Almonty with up to $20.0 million in financing and a commitment to purchase a portion of the output of the next tungsten mine Almonty brings into production.”
“Almonty looks forward to partnering with GTP on the next tungsten mining project we bring into production,” Black said in the statement. “This MOU and Off-Take Commitment demonstrates GTP’s faith in the Almonty team’s ability to deliver reliable sources of tungsten concentrate supply from current and future projects.”
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned int his article
Editorial Disclosure: Almonty Industries is an advertising client of the Investing News Network. This article is not part of any advertising campaign and is not paid-for content.