Almonty Industries Announces Proposed Convertible Senior Notes Offering

On June 4, 2026, Almonty Industries announced a private offering of up to $700 million in convertible senior notes due 2031, with an additional $100 million option for initial purchasers. The notes are senior unsecured, with interest payable semi-annually, and are convertible into common shares under certain conditions; settlement may be in shares, cash, or a combination. A portion of proceeds will fund capped call transactions to offset potential dilution from conversions. Net proceeds are earmarked to refinance existing debt, support working capital, and general corporate purposes, including possible acquisitions. The offering’s final terms, including interest rate and conversion price, will be set at pricing, and closing is subject to TSX approval.

Almonty Industries Inc. (AII) announced a significant capital raise of $700 million to $800 million, a move that represents a notable shift from equity-heavy funding to fixed-income capital markets. This offering is substantial relative to the company’s market capitalization of approximately $7.9 billion and its existing cash holdings of $259.9 million.

The transaction further strengthens Almonty’s liquidity, building on a net cash position reported in the first quarter of 2026, which showed $259.9 million in cash against $165.3 million in total debt. The additional capital is expected to support larger-scale initiatives, including Phase II at Sangdong, the tungsten-oxide facility, the Gentung restart, or potential mergers and acquisitions.

To limit equity dilution, management has utilized capped call structures and opted to issue convertible notes rather than common shares at elevated prices. This approach follows a period of successful execution for Almonty, which saw the first ore production at Sangdong Phase I in December 2025, followed by commissioning in March 2026. The company also acquired Gentung, relocated its headquarters to the United States, and benefited from skyrocketing APT prices. The convertible offering is viewed as a logical step to capitalize on the company’s high-equity valuation and de-risk the balance sheet.

Almonty Industries Inc. (AII) is a vertically integrated tungsten producer aiming to become the dominant non-Chinese supplier of tungsten concentrate and oxide to Western defense, semiconductor, aerospace, and advanced manufacturing markets. Its flagship asset is the Sangdong Tungsten Mine in South Korea, one of the world’s largest and highest-grade tungsten deposits, averaging approximately 0.51% WO₃ with a mine life exceeding 45 years. Phase I, which processes 640 kilotons of ore per year to produce roughly 2,300 tons of concentrate, is currently commissioning and ramping up. Phase II, planned for 2027, will increase processing to 1.2 megatons of ore per year and output to approximately 4,600 tons of concentrate. At full production, Sangdong could supply about 40% of non-China global tungsten demand.

The company also operates the Panasqueira Mine in Portugal, which is currently its sole revenue generator. Expansion drilling is underway to deepen the mine to Level 4 and increase output. In the United States, Almonty owns the Gentung Browns Lake Project in Montana, which holds an NI 43-101 indicated resource of 7.53 megatons at 0.315% WO₃. Production is targeted for the second half of 2026, with a potential output of 140,000 metric tons of uranium (MTU) per year.

The company’s future pipeline includes a molybdenum deposit at Sangdong with an off-take agreement with SeAH M&S, a tungsten oxide facility in pre-construction, and the possible reopening of the Los Santos mine in Spain. Strategically, Almonty has relocated its corporate headquarters to Dillon, Montana, appointed former U.S. generals to its board, and was invited to the DARPA Critical Minerals Forum and recognized by the U.S. Congress. The 2027 U.S. defense procurement ban on Chinese tungsten provides a significant market tailwind.