Almonty Industries Inc. has confirmed that drilling at its Sangdong Molybdenum Project in Yeongwol, Gangwon Province, South Korea, has yielded grades consistent with historical data. The company is accelerating its drilling campaign to address a critical supply shortage of the metal in South Korea. Molybdenum is a strategic metal used to enhance heat and corrosion resistance in steel and specialty alloys, with applications in aerospace, defense, and renewable energy. The spot price of molybdenum has increased by approximately 23.5% over the past year to 592.34 CNY/Kg.

The drilling program aims to re-examine mineralized structures identified in historical drill holes and enhance resource categorization. To date, approximately 37% of the 26 planned drill holes, covering a total of 12,000 meters, have been drilled. The assays received thus far support the company's confidence in the scale and quality of the resource. Almonty plans to begin mining without delay once the full extent of the molybdenum ore body at Sangdong is confirmed.

Market Context

South Korea is currently facing a supply crisis, with the national stockpile falling short. The government has issued public notices urging private companies to secure molybdenum to support industries such as semiconductors and petrochemicals.

Operational Strategy

Lewis Black, Chairman, President and Chief Executive Officer of Almonty Industries, stated that advancing both molybdenum and tungsten allows the company to build long-term value while supporting national resource security. He noted that the early results are highly encouraging and that the Sangdong Molybdenum Project can become a stable, allied source of supply for a metal vital to defense, energy, and advanced manufacturing.

The company previously determined that the Sangdong Tungsten Mine is its only material mining project under National Instrument 43-101 Standards and ASX Listing Rules. However, Almonty remains engaged in the operation and development of other mineral properties, including the Sangdong Molybdenum Project.

Almonty Industries Inc. has closed a significantly oversubscribed offering of US$800,000,000 aggregate principal amount of 2.25% convertible senior notes due 2031. The transaction included the full exercise by initial purchasers of their option to purchase an additional US$100,000,000 aggregate principal amount of notes. The net proceeds from the offering were approximately US$772.7 million, after deducting discounts, commissions, and offering expenses.

The notes were offered in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. Lewis Black, Chairman, President & Chief Executive Officer of Almonty, stated that the financing strengthens the balance sheet and enhances financial flexibility to advance the flagship Sangdong Mine. The company aims to establish a secure, conflict-free, non-China source of tungsten for the United States and its allies.

Key Offering Details

The offer and sale of the notes and any common shares issuable upon conversion have not been registered under the Securities Act or any other securities laws. Consequently, the notes and shares cannot be offered or sold except pursuant to an exemption from registration requirements.

Almonty is a supplier of conflict-free tungsten, a strategic metal critical to the defense and advanced technology sectors. The company operates the Sangdong Mine in South Korea and holds additional projects in Portugal, the U.S., and Spain.