Almonty signs tungsten supply deal with Sandvik subsidiary WBH

Almonty Industries Inc. (Nasdaq: ALM, Frankfurt: ALI1) has signed a multi-year, take-or-pay tungsten concentrate supply agreement with Wolfram Bergbau und Hütten AG (WBH), a subsidiary of the Sandvik Group, covering the retreatment of tailings at the Los Santos Mine in western Spain.

The agreement covers a minimum of approximately 1,720 tonnes of contained tungsten trioxide (WO₃) recovered from the mine's existing tailings inventory. It includes a conditional $3.0 million one-time upfront payment from WBH for offtake rights, with pricing described as index-linked with a floor.

The Los Santos Mine, an open-pit scheelite skarn operation located about 50 kilometres south of Salamanca, has been in care and maintenance since February 2020. Almonty's restart plan centers on retreating existing tailings rather than new primary extraction. The agreement is structured to precede the resumption of production, providing committed revenue and customer capital to support reinstatement of the processing plant.

WBH operates the only integrated tungsten smelting plant outside of Asia and Russia, located at St. Martin im Sulmtal, Austria. It has been part of the Sandvik Group since 2009 and also operates an underground scheelite mine at Mittersill, Austria.

The agreement also comes ahead of a change in U.S. defense procurement rules. Effective January 1, 2027, restrictions on specified tungsten materials originating in China, Russia, North Korea, and Iran will extend back through the supply chain to the mining or production of tungsten ore or feedstock.

Lewis Black, Chairman, President and CEO of Almonty, said the agreement provides "a take-or-pay commitment from a Sandvik Group company, index-linked pricing with a floor beneath it and a sharing of the financial requirements to reactivate the property." Black added that the company intends to apply the same tailings retreatment technology to its Panasqueira mine in Portugal and to other abandoned European sites.

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