Sales price 18 million Canadian dollars / stake in major tungsten producers
Heidelberg / Toronto. Deutsche Rohstoff AG has today signed a contract to sell all of the shares of its Australian companies Wolfram Camp Mining and Tropical Metals, which it owns to 100%. The companies operate the tungsten and molybdenum mine Wolfram Camp in Queensland, Australia. The purchase price amounts to 18 million Canadian dollars (CAD), about 12,3 million euros. The buyer is the Canadian company Almonty Industries, which operates among others the Los Santos tungsten mine in Spain. Almonty's shares are traded on the TSX Venture in Toronto.
The purchase price consists of two parts according to the contract:
- Deutsche Rohstoff will receive around 12,2 million shares in Almonty with an equivalent value of CAD 10,5 million. This corresponds to a share of 24,9% in Almonty's share capital.
- In addition, DRAG receives a convertible bond in the amount of CAD 7,5 million. It has a term of 2,5 years and bears interest at 4% pa. It can optionally be exchanged by DRAG for Almonty shares from a share price of CAD 1,45.
The effectiveness of the contract is still dependent on fulfilling various conditions. This includes the approval of the general meeting of Almonty and the approval of other parties. In particular, the approval of the Toronto Stock Exchange is required, as well as the Australian authorities' declaration of non-objection to an investment by a foreign company. The contracting parties expect the transaction to be completed by the end of August.
Titus Gebel, CEO of Deutsche Rohstoff AG, commented: "In our view, Almonty is the ideal buyer for Wolfram Camp. The management has a great deal of experience with tungsten mines and has shown that it can successfully develop them over the long term. The DRAG retains a significant share of a now larger tungsten producer. We are confident that this share will gain value due to the strong fundamentals of Wolfram and Almonty's strong market position. "
Lewis Black, CEO of Almonty, commented, "We are pleased to have acquired the Wolfram Camp Mine, and the acquisition nearly doubled our tungsten activities. WCM is a producing tungsten mine whose characteristics are very similar to those of the Panasqueira mine, which we have successfully refurbished and resold in the past with our management team and Primary Metals Inc. company. Our technical team, which has spent most of its career with Wolframit and with the acquisition of the Los Santos mine also with Scheelit, is very confident about the additional potential of WCM. Adding Deutsche Rohstoff as a major shareholder is considered positive and allows DRAG and its shareholders to continue to be involved in the tungsten business through a much larger company. Following the transaction, Almonty will be the only publicly traded company with two producing tungsten mines producing both tungsten and scheelite concentrates. "
Heidelberg, 30. June 2014
Deutsche Rohstoff, listed in the Entry Standard, is building a new raw material producer. The focus is on oil & gas and so-called high-tech metals such as tungsten, tin and rare earths. All projects are located in politically stable countries with high environmental standards. The business model is based on the (re-) development of deposits that have already been well explored in the past. Further information on Deutsche Rohstoff at www.rohstoff.de.
Source: http://www.rohstoff.de/2014/06/30/deutsche-rohstoff-verkauf-australische-wolfram-camp-mine/
