TORONTO (miningweekly.com) – The proposed merger between Almonty Industries and Woulfe Mining will not take place after the companies could not reach an agreement.
Certain analysts touted the deal as the start of a much-needed tungsten market consolidation, but Almonty president and CEO Lewis Black nevertheless vowed to “continue to consolidate global tungsten mining assets outside of China”.
TSX-V-listed Almonty announced that it had terminated discussions with Woulfe and that the nonbinding letter of intent (LOI) to combine the businesses, which was entered into on January 27 and extended on February 13, had been terminated.
As part of the initial LOI, Almonty provided Woulfe with a C$150 000 unsecured bridge loan for basic working capital needs. The bridge loan would mature on April 30 and bears an interest rate of 12% a year, payable at the maturity date. The loan ranked equally with Dundee Corporation's existing unsecured convertible debt of Woulfe.