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Almonty Raises C$500,000, US$733,333, and A$550,000 through Placement of Common Share Units and CDIs

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Almonty Raises C$500,000, US$733,333, and A$550,000 through Placement of Common Share Units and CDIs

Almonty Industries Inc. has successfully secured firm commitments to raise gross proceeds of C$500,000, US$733,333, and A$550,000 through the issuance of Placement Units and Placement Chess Depository Interests Units (CDIs). Each participant in the Placement Units will receive one warrant for every common share issued, while each CDI issued will come with one free unlisted option. The exercise price for the warrants and options is set at C$0.60, US$0.45, and A$0.69, respectively, with an expiration date of 36 months from the closing date.

Participation of Company Executives

Lewis Black, the CEO of Almonty, will be investing C$500,000, while Dan D'Amato, a director of the company, will be investing US$366,666.63 towards the Placement Units. The proceeds from the Placement will be utilized for general working capital and offer costs. The Placement Units and CDIs issued will rank equally with existing CDIs and Common Shares.

Regulatory Approvals and Lead Manager

The closing of the Placement is subject to obtaining all necessary regulatory approvals, including acceptance by the TSX and ASX. RM Corporate Finance Pty Ltd acted as the Lead Manager for the Placement and will receive a total fee of 6% of the gross proceeds raised from the Placement CDIs. Almonty Industries Inc. is primarily engaged in mining, processing, and shipping tungsten concentrate from its mines in Spain, Portugal, and South Korea. The company also has ongoing projects in the tin/tungsten sector. For more information about Almonty's activities, visit their website or refer to their profile on sedar.com.

Implications of Almonty's Fundraising for New Businesses

Almonty Industries Inc.'s recent successful fundraising through the issuance of Placement Units and Chess Depository Interests Units (CDIs) could set an interesting precedent for new businesses, particularly in the mining sector. The company raised a significant amount of C$500,000, US$733,333, and A$550,000, demonstrating the potential of such financial strategies for capital generation.

Investment Opportunities and Capital Generation

The participation of company executives, such as CEO Lewis Black and director Dan D'Amato, in the Placement Units, underscores the confidence in the company's future prospects. This could encourage new businesses to explore similar fundraising strategies, where company executives take an active role in investing.

Regulatory Compliance and Management

The closing of Almonty's Placement, subject to regulatory approvals, highlights the importance of compliance with financial regulations in such transactions. New businesses must be prepared to navigate these regulatory landscapes. The role of RM Corporate Finance Pty Ltd as the Lead Manager also underlines the value of expert guidance in managing such placements.
Business Expansion and Development
Almonty's use of the funds for general working capital and offer costs indicates a focus on business expansion and development. For new businesses, this serves as a reminder of the importance of securing funding for growth and operational costs. This fundraising strategy could be a viable model for new businesses in similar sectors.
Story First Published at: https://financialpost.com/pmn/business-wire-news-releases-pmn/almonty-placement-of-common-share-units-and-cdis-raises-c500000-us733333-and-a550000
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