Almonty’s US$112.5M Capital Raise Highlights Risks in Tungsten Supply Chain
Almonty Industries has priced an upsized US$112.5 million share offering to accelerate development of key tungsten and molybdenum projects, reinforcing its position amid tightening global supply chains.
- Upsized offering of 18 million shares at US$6.25 each
- Gross proceeds of US$112.5 million with 30-day over-allotment option
- Funds allocated to Gentung Browns Lake, Panasqueira, and Sangdong projects
- Offering led by BofA Securities and expected to close December 10, 2025
- Strategic move amid geopolitical tensions impacting tungsten supply
Almonty’s Capital Raise in Context
Almonty Industries Inc., a prominent global tungsten producer, has announced the pricing of an upsized underwritten offering of 18 million common shares at US$6.25 each, raising gross proceeds of US$112.5 million. This capital raise, led by BofA Securities and supported by Cantor Fitzgerald, D.A. Davidson, and A.G.P./Alliance Global Partners, is set to close around December 10, 2025, subject to customary conditions.
The offering includes a 30-day over-allotment option for an additional 2.7 million shares, providing flexibility to increase capital if market demand supports it. This move underscores Almonty’s strategic intent to bolster its financial position amid a tightening global tungsten market.
Funding Growth Across Key Projects
The net proceeds from this offering will be directed towards advancing exploration and development at the Gentung Browns Lake Tungsten Project, expanding operations at the Panasqueira Mine in Portugal, and further exploration at the flagship Sangdong Molybdenum Project in South Korea. These projects are critical to Almonty’s growth strategy, aiming to increase production capacity and secure supply in a market increasingly wary of geopolitical risks.
Almonty’s Sangdong Mine, historically one of the world’s largest and highest-grade tungsten deposits, is particularly significant. It is expected to supply over 80% of global non-China tungsten production once at full capacity, directly addressing supply vulnerabilities caused by export restrictions and defense procurement bans imposed by China.
Strategic Positioning Amid Geopolitical Tensions
As geopolitical tensions escalate, tungsten’s role as a critical metal for defense, armor, munitions, and advanced technologies has become more pronounced. Almonty’s diversified operations across South Korea, Portugal, the United States, and Spain position it well to meet the rising demand from Western allies focused on supply-chain security and defense readiness.
This capital raise not only strengthens Almonty’s balance sheet but also signals confidence in the strategic importance of tungsten and molybdenum in global markets. Investors will be watching closely how effectively the company deploys these funds to accelerate project timelines and production growth.
Looking Ahead
While the offering is subject to market conditions and customary closing requirements, its successful completion could mark a pivotal step for Almonty in consolidating its leadership in the tungsten sector. The company’s ability to navigate regulatory approvals and execute on its expansion plans will be critical to sustaining momentum in a market defined by supply constraints and geopolitical uncertainty.
Bottom Line?
Almonty’s capital raise sets the stage for accelerated growth but hinges on execution amid volatile tungsten markets.
Questions in the middle?
- Will Almonty fully exercise the 30-day over-allotment option to raise additional capital?
- How quickly can the Gentung Browns Lake and Panasqueira projects scale production?
- What impact will evolving geopolitical tensions have on Almonty’s supply contracts and pricing power?