Deutsche Rohstoff AG: Almonty provides update on the project financing for the Sangdong Mine
Mannheim/Toronto. Almonty Industries announced that KfW IPEX-Bank GmbH has consented to the Company disclosing the bank as the lender and the general terms of the proposed debt project financing for Almonty's Sangdong mine in Korea. The project financing approval process is now in the late stage of finalization with due diligence almost complete. The general terms of the proposed project financing to be provided by KfW IPEX-Bank are attractive:
1. USD 73 million principal amount senior project finance loan secured on the Sangdong mine;
2. Interest to be on very attractive terms and based on normal commercial European lending rates and will be confirmed later.
3. Term of 8.25 years with an initial principal repayment holiday and repayments of principal commencing after the second anniversary of the initial drawdown; and
4. Oesterreichische Kontrollbank AG ("OeKB"), is interested in evaluating to provide a substantial finance cover guarantee based on the previously announced long term offtake agreement.
Negotiation of the final term sheet is ongoing and the Company expects all principal terms and commitments to be completed within the next 12 weeks. The project financing commitment will then be subject to the execution of definitive loan and security documentation. In the meantime, work is continuing at the Sangdong site to ensure the timely commissioning as requested by Almonty's customer under the previously announced offtake agreement for the Sangdong mine.
Mannheim, 5 October 2018
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.
Contact:
Deutsche Rohstoff AG
Thomas Gutschlag
Tel. +49 621 490 817 0
info@rohstoff.de