News Summary
On December 9, 2025, Almonty Industries announced the pricing of an upsized underwritten public offering of 18 million common shares at a price of US$6.25 per share for gross proceeds of US$112.5 million. BofA Securities and Cantor Fitzgerald are acting as agents. This news follows the announcement on December 8, 2025, of a proposed offering of 15 million shares. The use of proceeds is designated for exploration and development at the recently acquired Gentung Browns Lake tungsten project, expansion work at the Panasqueira mine, exploration at the Sangdong molybdenum project, and for working capital purposes.
Material Impact
The announcement of a US$112.5 million financing is materially positive. While the offering price of US$6.25 (approximately C$8.44 assuming a 1.35 FX rate) represents a significant discount of ~23% to the previous day’s close of C$10.93, the ability to raise such a substantial amount of capital, and particularly to have it upsized from the initially proposed 15 million shares, indicates very strong institutional demand. This capital injection fully funds the company’s ambitious growth plans for the foreseeable future, significantly de-risking the balance sheet and removing a major financing overhang.
Reviewing the historical news flow reveals a company executing a clear, multi-faceted strategy with remarkable speed over the last 12 months:
– Strategic Repositioning: Starting in early 2025, Almonty began a deliberate pivot towards the United States, initiating a redomiciling from Canada to Delaware. This was reinforced by appointing high-profile US national security and defense logistics experts like General Gustave F. Perna and Alan Estevez to its board, and partnering with government relations firm American Defense International.
– Commercial Alignment: The company secured a binding offtake agreement with Tungsten Parts Wyoming for U.S. defense applications in May 2025, directly tying its production to strategic end-users and solidifying its “western-allied supplier” narrative.
– Capital Markets Execution: After a 1-for-1.5 share consolidation in July, Almonty successfully up-listed to the Nasdaq and completed a US$90 million public offering at US$4.50. This provided the capital to advance its flagship Sangdong project towards completion.
– Operational Milestones: Throughout the year, the company consistently messaged that its Sangdong Tungsten Mine in South Korea was nearing completion. The Q3 2025 financials (Nov 3, 2025) confirmed construction was “substantially complete” with ramp-up underway. This is the company’s most critical catalyst.
– Growth through M&A and Exploration: In October/November 2025, Almonty acquired the Gentung Browns Lake Tungsten Project in Montana, establishing a physical US presence. It also launched significant drilling programs to expand and define resources at its producing Panasqueira mine in Portugal and its Sangdong Molybdenum project.
This latest financing is the capstone on a transformative year. The company’s cash position was already strong at C$111.6 million as of September 30, 2025. This raise will boost its pro-forma cash balance to over C$260 million, providing a massive treasury to execute on all stated objectives: completing the Sangdong ramp-up, expanding Panasqueira, developing the new US asset, and advancing the Molybdenum project. The risk for investors now shifts almost entirely from financing to operational execution. The dilution is the price paid to fully fund the company’s path to becoming the preeminent non-Chinese tungsten supplier.
Catalysts
– Closing of the Financing: Confirmation that the US$112.5 million in gross proceeds is in the company’s treasury.
– Sangdong Mine Commissioning Updates: News on the production ramp-up at Sangdong is the most critical near-term catalyst. Investors should look for announcements regarding first concentrate production, achievement of commercial production, and initial production figures against the Phase 1 target of 640,000 tonnes of ore per year.
– Gentung Browns Lake Project Plan: A detailed development plan, timeline, and budget for the newly acquired US tungsten project.
– Drill Results: Initial results from the 14,000-metre drill program at the Panasqueira Mine and the 11,700-metre program at the Sangdong Molybdenum Project. Positive results could signal mine life extension and resource growth.
Materiality Conclusion
The upsized US$112.5 million financing is materially positive. It demonstrates strong institutional backing and provides Almonty with an exceptionally strong balance sheet to execute its growth strategy without near-term capital constraints. This event removes financing risk and allows the company to focus on the operational ramp-up of its flagship Sangdong mine, which remains the key value driver. While dilutive, the capital secured is essential for the company’s strategic objectives.
