Almonty gains interest in ferrotungsten plant with ATC takeover

JOHANNESBURG (miningweekly.com) – Canada-based tungsten miner Almonty Industries has moved to take over ATC Alloys, which would provide the company access to one of the largest and most advanced ferrotungsten plants outside China.

Announcing the transaction on Tuesday, the companies said in a joint statement that TSX-V-listed Almonty would make an off-market takeover offer for all the shares of ASX-listed ATC (formerly Hazelwood Resources).

ATC shareholders would receive one new Almonty share in the form of CHESS Depository Interests to be listed on the ASX for every 10.38 ATC Alloys shares held. Based on an Almonty share price of C$0.37 a share, the offer ratio implied an ATC share price of A$0.0411 a share.

The ATC directors recommended that shareholders accept the offer. Almonty already entered into pre-bid acceptance agreements with a number of ATC shareholders, including all members of the ATC board that held shares in ATC, and other major shareholders in respect of a total of 19.9% of ATC’s issued shares.  Almonty did not currently hold any shares in ATC.

“The offer provides ATC Alloys shareholders with ownership in Almonty’s diversified production and development portfolio with strong financial resources and a board and management team with a proven track record of delivering shareholder returns,” said ATC chairperson Pat Burke.

Toronto-headquartered Almonty owns the Los Santos mine, in Spain, the Wolfram Camp mine, in Queensland and the Panasqueira mine, in Portugal, as well as development projects in Korea and Spain.

ATC owned a 60% joint venture interest in a ferrotungsten plant near Vinh Bao, in Vietnam. The ATC ferrotungsten plant has a nameplate capacity of about 4 000 t/y of ferrotungsten alloy, equivalent to 3 000 t/y of contained tungsten (at 75% minimum tungsten content).

The takeover would also provide Almonty with a secondary listing on the ASX, which president and CEO Lewis Black said would promote enhanced trading liquidity and greater investor interest in Almonty.