Almonty Finally Gets A Piece Of Woulfe Mining — What's Next?
Last week, Almonty Industries announced plans to invest in Woulfe Mining. Here's what Almonty's president and CEO, Lewis Black, had to say about the relationship in conversation with the Investing News Network.
Surprising news hit the tungsten space last Tuesday when Almonty Industries (TSXV:AII,OTCMKTS:ALMTF) announced plans to invest in Woulfe Mining (CSE:WOF). Specifically, the two companies signed an agreement for a non-brokered private placement for $1 million in principal amount of convertible unsecured subordinated debentures at a price of $1,000 per debenture. Almonty also inked a deal with Dundee (TSX:DC.A) and Dundee Resources to acquire 29,497,229 common shares in the capital of Woulfe currently owned by Dundee at a price of $0.056 per share. In exchange, Almonty will issue 2,949,723 of its common shares to Dundee for $0.56 a piece. While deals like that aren't out of the ordinary, previous interactions between Woulfe and Almonty make the agreement an interesting one. To start, the two companies entered into a non-binding letter of intent back in January to merge and create "the leading tungsten producer outside of China." The agreement would have seen Almonty purchase all of Woulfe's outstanding shares at a price of $0.08 per share. However, less than a month later, releases from both companies revealed that they had decided against the merger. Neither offered much in the way of an explanation. Fortunately, following Tuesday's agreement, the Investing News Network was able to catch up with Almonty's president and CEO, Lewis Black, to gain a better understanding of the companies' relationship and what investors can expect moving forward. Timing is everything "It was just a timing issue. I don't think it was any one thing. In February, it was a question of timing for both sides. Sometimes you don't have enough time," Black said in a phone interview. "We were working on so many other opportunities that we are still currently working on that the timing just didn't work. The dialogue never stopped between the parties."