Almonty Industries (AII.TO) has provided an update on its financing efforts. After a binding commitment in January, the company has now announced it has received notification the ECA cover has been issued by the OeKB. This confirmation of the Austrian government guarantee is an important step to effectively close the US$76M loan which is now in the final stages of crossing t’s and dotting i’s.
As we explained in a recent report, having cheap funding ensures Almonty Industries will be able to retain a substantial amount of cash in its treasury as a standard high single digit debt financing would have been much more expensive.
Almonty has now also closed the final tranche of its C$0.635 financing which was announced in November. An additional 747,000 units were issued with each unit consisting of one common share and a full warrant with a strike price of C$0.75 and a three year term. Almonty is putting the pieces of the financing puzzle together and we hope to see the final confirmation of the project finance loan before Easter.
Disclosure: The author has a long position in Almonty Industries. Almonty is not a direct sponsor of the website, but a third party has entered into a short-term sponsorship.
