Almonty Industries raises $700M via note offering

Tungsten miner Almonty Industries (Nasdaq: ALM) (TSX, ASX: AII) says it plans to raise $700 million in a senior note offering for mostly working capital.

The notes would carry an annual interest rate of 2.25% and are convertible into Almonty’s stock at $27.40 per common share, the Montana-based company said in a news release on Friday. The notes would be offered to “qualified institutional buyers” and scheduled to settle on June 9, 2026, it added.

The initial purchasers would also have the option to buy an additional $100 million in principal amount, settled within 13 days from the notes’ first issuance, Almonty also said.

After deducting the buyers’ discounts and commissions as well as company expenses, it is expected that the net proceeds to Almonty would total $675.9 million, or $772.7 million if the initial purchases take up the option to buy additional notes.

Almonty Industries’ share price sank by 18% on the potential dilution. It traded at about $17.20 apiece in New York by midday Friday, for a market capitalization of $4.9 billion.

$543M for working capital

Most of the proceeds, about $543 million, will be allocated towards working capital and general corporate purposes, which may include acquisitions, Almonty said in its release.

A total of $83 million would be set aside to fund the cost of privately negotiated capped call transactions with the note buyers, while the remaining $50 million would be used to refinance existing debt and liabilities, it added.

The capped call transactions, the company says, are expected generally to reduce the potential dilution to Almonty shareholders upon any conversion of the notes. These are expected to cover the number of common shares initially underlying the notes, with a cap price of $41.36 per share — a 100% premium over Almonty’s last reported share sale price.

Phase 1 mine complete

The offering comes amid Almonty’s continued ramp-up of its tungsten mining operations in South Korea, part of the company’s broader strategy of becoming a reliable supplier of the critical mineral for the Western market. Its flagship mine, Sangdong, began operations in December and is being advanced towards commercial production.

In March, Almonty successfully commissioned the Phase 1 mine, with the processing plant designed to handle approximately 640,000 tonnes of ore annually, yielding roughly 2,300 tonnes of tungsten concentrate per year. A Phase 2 expansion is being planned for next year, potentially increasing processing capacity to approximately 1.2 million tonnes and doubling the tungsten output to roughly 4,600 tonnes.

At full capacity, Sangdong is expected to supply approximately 40% of global tungsten demand outside China, the company has said.