Almonty Secures Major Funding for Strategic Expansion

Almonty CA0203981034

Almonty Industries has successfully completed a significant equity raise, securing the capital required to advance its portfolio of tungsten projects. The transaction's pricing, set close to recent analyst valuations, establishes a fresh benchmark for the share price and marks a pivotal shift in the company's financial standing.

Through an upsized and fully underwritten public offering, Almonty has raised substantial gross proceeds. The company issued 20.7 million shares at a price of US$6.25 each, generating approximately US$129.4 million (around C$180 million).

• Gross Proceeds: ~US$129.4 million
• Shares Issued: 20.7 million
• Issue Price: US$6.25 per share
• Underwriters: Included BofA Securities and Cantor Fitzgerald & Co.

The underwriters exercised their over-allotment option in full. This infusion of capital significantly strengthens the company's balance sheet and provides enhanced financial flexibility for project execution.

According to CEO Lewis Black, Almonty is now "fully funded" to execute its planned exploration and development initiatives. He indicated that no further equity raises are currently contemplated under the existing base prospectus.

In market trading following the announcement, the share price moved toward the US$6.25 offering price. This level appears to be viewed by institutional investors as a fair entry point for the company's forthcoming growth phase.

Capital Allocation: Three Core Projects Targeted

The newly secured funds have been earmarked to accelerate development across three key assets:

1. Gentung Browns Lake Project (Montana, USA): Accelerating the development of this recently acquired tungsten asset, with a targeted production start in the second half of 2026.
2. Sangdong Mine (South Korea): Completing the ramp-up phase at this flagship operation, which is positioned to supply a meaningful portion of non-Chinese tungsten production.
3. Panasqueira Mine (Portugal): Funding expansion initiatives at this existing operational site.

The acquisition of the Gentung Browns Lake project, highlighted in a recent update by Diamond Equity Research, establishes Almonty's first operational footprint in the United States. This is a strategic move within the context of growing efforts to build national supply chains for critical minerals.

Valuation Context and Market Implications

The US$6.25 offering price now serves as a key reference point for the stock. Notably, this figure is closely aligned with analysis from Cantor Fitzgerald, which initiated coverage with an "Overweight" rating and a US$6.50 price target in August 2025.

The narrow gap between the issue price and this target suggests institutional investors see this valuation as appropriate for a company transitioning into its next phase. For many resource developers, securing project financing is a primary risk; this overhang has been substantially mitigated for Almonty by the US$129+ million capital raise.

The company is effectively evolving from a capital-constrained developer into a well-funded operator with a clear pathway toward generating operational cash flow.

The Path Forward: Execution is Key

Attention now turns to operational execution in the coming quarters. Progress updates from the Sangdong mine and further development milestones for the Gentung Browns Lake project in Montana will be critical watchpoints.

From a technical perspective, the area around US$6.25 is likely to be viewed as an important support zone. Maintaining this level could help stabilize market sentiment. The next significant catalyst is expected to come from either an updated technical report or clear production milestones from Sangdong, which are of particular importance for the first quarter of 2026.