Tungsten miner Almonty raises $700m from notes offering
Global tungsten miner Almonty Industries has announced an oversubscribed private placement offering of $700-million comprising of 2.25% convertible senior notes due 2031.
The issuance and sale of the notes to qualified institutional investors is expected to occur on June 9.
Almonty has also granted the initial purchasers of the notes an option to purchase up to an additional $100-million worth of notes within 13 days from the date the notes are first issued.
The company will settle note conversions by delivering common shares or may choose to pay or deliver, as applicable, either cash or a combination of cash and shares.
The initial conversion rate is 36.4950 common shares per $1 000 principal amount of notes, which represents an initial conversion price of about $27.40 apiece. The initial conversion price represents a premium of approximately 32.5% over the last reported sale price of $20.68 apiece on June 4, 2026. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.
Almonty expects the net proceeds from the offering to be about $675-million, or $772-million under the additional notes purchased scenario, which the group intends to use to fund the cost of entering into capped call transactions ($83-million), to refinance existing debt and liabilities ($50-million) and for general corporate purposes ($543-million) which may include acquisitions of assets or businesses.
Almonty, which is listed on Nasdaq, TSX, ASX and in Frankfurt, is a leading supplier of tungsten globally. Tungsten has become critical amid heightened geopolitical tension owing to its use in armour, munitions and electronics manufacturing.
Almonty's flagship asset is the Sangdong mine, in South Korea, which it brought back into production in March after a 30-year hiatus.
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