Exhibit 99.1
Almonty
Industries Prices Oversubscribed US$700 Million Convertible Senior Notes Offering
DILLON,
Mont.—(BUSINESS WIRE)— June 4, 2026 —Almonty Industries Inc. (“Almonty” or the “Company”)
(Nasdaq: ALM) (TSX: AII) (ASX: AII) (Frankfurt: ALI1) today announced the pricing of its oversubscribed offering of US$700,000,000
aggregate principal amount of 2.25% convertible senior notes due 2031 (the “notes”) in a private offering to persons
reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities
Act”). The issuance and sale of the notes are scheduled to settle on June 9, 2026, subject to customary closing conditions.
Almonty also granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including,
the date the notes are first issued, up to an additional US$100,000,000 aggregate principal amount of notes.
The
notes will be senior, unsecured obligations of Almonty and will accrue interest at a rate of 2.25% per annum, payable semi-annually
in arrears on January 1 and July 1 of each year, beginning on January 1, 2027. The notes will mature on July
1, 2031, unless earlier repurchased, redeemed or converted. Before April 1, 2031, noteholders will have the right to convert
their notes only upon the occurrence of certain events. From and after April 1, 2031, noteholders may convert their notes at any
time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Almonty
will settle conversions by delivering common shares, or may choose to pay or deliver, as applicable, either cash or a combination of
cash and common shares, at Almonty’s election. The initial conversion rate is 36.4950 common shares per US$1,000
principal amount of notes, which represents an initial conversion price of approximately US$27.40 per common share. The initial
conversion price represents a premium of approximately 32.5% over the last reported sale price of US$20.68 per common share
on June 4, 2026. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.
The
notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Almonty’s option at any time, and from
time to time, on or after July 1, 2029 and on or before the 40th scheduled trading day immediately before the maturity date, but
only if the last reported sale price per common share exceeds 130% of the conversion price for a specified period of time and certain
other conditions are satisfied. In addition, the notes will be redeemable, in whole and not in part, at Almonty’s option at any
time in connection with certain changes in tax law. The redemption price will be equal to the principal amount of the notes to be redeemed,
plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
If
a “fundamental change” (as defined in the indenture for the notes) occurs, then, subject to a limited exception, Almonty
will be required to offer to each noteholder to repurchase its notes for cash. The repurchase price will be equal to the principal amount
of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.
Almonty
estimates that the net proceeds from the offering will be approximately US$675.9 million (or approximately US$772.7 million
if the initial purchasers fully exercise their option to purchase additional notes), after deducting the initial purchasers’ discounts
and commissions and Almonty’s estimated offering expenses. Almonty intends to use approximately US$83.0 million of the net
proceeds to fund the cost of entering into the capped call transactions described below. Almonty intends to use approximately US$50.0
million of the remainder of the net proceeds to refinance existing debt and liabilities and approximately US$543.0 million of
the remainder of the net proceeds for working capital and general corporate purposes, which may include, without limitation, acquisitions
of assets or businesses. If the initial purchasers exercise their option to purchase additional notes, then Almonty intends to use
a portion of the additional net proceeds to fund the cost of entering into additional capped call transactions as described below.
In
connection with the pricing of the notes, Almonty entered into privately negotiated capped call transactions with one or more of the
initial purchasers of the notes and/or their affiliates or other financial institutions (the “option counterparties”). The
capped call transactions will initially cover, subject to anti-dilution adjustments substantially similar to those applicable to the
notes, the number of common shares initially underlying the notes. If the initial purchasers exercise their option to purchase additional
notes, then Almonty expects to enter into additional capped call transactions with the option counterparties.
The
cap price of the capped call transactions will initially be US$41.36 per share, which represents a premium of 100% over
the last reported sale price of Almonty’s common shares of US$20.68 per share on June 4, 2026, and is subject to
certain adjustments under the terms of the capped call transactions.
The
capped call transactions are expected generally to reduce the potential dilution to Almonty’s common shares upon any conversion
of the notes and/or offset any potential cash payments Almonty is required to make in excess of the principal amount of converted notes,
as the case may be, upon conversion of the notes. If, however, the market price per common share, as measured under the terms of the
capped call transactions, exceeds the cap price of the capped call transactions, there would nevertheless be dilution and/or there would
not be an offset of such potential cash payments, in each case, to the extent that such market price exceeds the cap price of the capped
call transactions.
Almonty
has been advised that, in connection with establishing their initial hedges of the capped call transactions, the option counterparties
or their respective affiliates expect to enter into various derivative transactions with respect to Almonty’s common shares and/or
purchase Almonty’s common shares concurrently with or shortly after the pricing of the notes. This activity could increase (or
reduce the size of any decrease in) the market price of Almonty’s common shares or the notes at that time.
In
addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various
derivatives with respect to Almonty’s common shares and/or purchasing or selling Almonty’s common shares or other securities
of Almonty in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and (x) are likely
to do so during the relevant valuation period under the capped call transactions and (y) are likely to do so following any early conversion
or repurchase of the notes by Almonty, if Almonty elects to unwind a corresponding portion of the capped call transactions in connection
with such early conversion or repurchase). This activity could also cause or avoid an increase or a decrease in the market price of Almonty’s
common shares or the notes, which could affect the ability to convert the notes, and, to the extent the activity occurs during any observation
period related to a conversion of notes, it could affect the number of shares and value of the consideration that noteholders will receive
upon conversion of the notes.
The
offer and sale of the notes and any common shares issuable upon conversion of the notes have not been, and will not be, registered under
the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption
from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any common shares issuable
upon conversion of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which
such offer, sale or solicitation would be unlawful.
The closing of the offering
is subject to receipt of all necessary regulatory approvals, including the acceptance by the TSX.
About
Almonty
Almonty
(Nasdaq: ALM) (TSX: AII) (ASX: AII) (Frankfurt: ALI1) is a leading supplier of conflict-free tungsten – a strategic metal critical
to the defense and advanced technology sectors. As geopolitical tensions heighten, tungsten has become essential for armor, munitions,
and electronics manufacturing. Almonty’s flagship Sangdong Mine in South Korea, historically one of the world’s largest and
highest-grade tungsten deposits, is expected to be a major contributor to the global non-China tungsten supply chain upon reaching full
capacity, directly addressing critical supply vulnerabilities highlighted by recent U.S. defense procurement bans and export restrictions
by China. With established operations in Portugal and additional projects in the U.S. and Spain, Almonty is strategically aligned to
meet rapidly rising demand from Western allies committed to supply-chain security and defense readiness.
Forward-Looking
Statements
This news release contains
“forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws.
All statements, other than statements of present or historical facts, are forward-looking statements. Forward-looking statements involve
known and unknown risks, uncertainties and assumptions and accordingly, actual results could differ materially from those expressed or
implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements
are typically identified by words such as “plan”, “development”, “growth”, “continued”,
“intentions”, “expectations”, “emerging”, “evolving”, “strategy”, “opportunities”,
“anticipated”, “trends”, “potential”, “outlook”, “ability”, “additional”,
“on track”, “prospects”, “viability”, “estimated”, “reaches”, “enhancing”,
“strengthen”, “target”, “believes”, “next steps” or variations of such words and phrases
or statements that certain actions, events or results “may”, “could”, “would”, “might”
or “will” be taken, occur or be achieved.
Forward-looking
statements in this news release include, but are not limited to, statements concerning the completion of the offering,
the expected amount and the intended use of the net proceeds, the effects of entering into, the capped call transactions
described above, and the advancement of the Sangdong Mine.
Forward-looking
statements are based upon certain assumptions and other important factors that, if untrue, could cause actual results to be
materially different from future results expressed or implied by such statements. There can be no assurance that forward-looking
statements will prove to be accurate.
Key assumptions upon which the Company’s
forward-looking information is based include, without limitation, the absence of material adverse changes in our industry or the global
economy, including interest rate fluctuations, inflationary pressures, supply chain disruptions, and commodity market volatility; trends
in our industry and markets, including the competitive environment; our ability to complete the offering on the terms described herein
or at all; and our intended use of the net proceeds of the offering.
Forward-looking statements are also subject to
risks and uncertainties facing the Company’s business, including, without limitation, the risks identified in the
Company’s annual information form for the year ended December 31, 2025 dated March 18, 2026 under the heading “Risk
Factors” and in the Company’s management’s discussion and analysis for the three months ended March 31, 2026 and
2025 dated May 11, 2026 under the heading “Risks and Uncertainties”, the satisfaction of the closing conditions
related to the offering and the risk that any corporate governance changes or alignments will not be implemented and/or
that one or more directors may not be re-elected at the Company’s upcoming annual general meeting of shareholders. Although
Almonty has attempted to identify important factors that could cause actual results, level of activity, performance or achievements
to differ materially from those contained in forward-looking statements, there may be other factors that could cause results, level
of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, and even if events or results described in the forward-looking statements are
realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on,
Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes
may vary. Moreover, Almonty may not consummate the offering described in this press release and, if the offering is
consummated, cannot provide any assurances regarding its ability to effectively apply the net proceeds as described above.
Investors are cautioned against attributing
undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying
on Almonty’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. Almonty has also assumed that material factors will not cause any forward-looking
statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and
is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING
INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY,
IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON
THIS INFORMATION AS OF ANY OTHER DATE. WHILE ALMONTY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR
TIME, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Contact
Information
Company
Contact
Lewis
Black
Chairman,
President & CEO
(647)
438-9766
info@almonty.com
Investor
Relations Contact
Lucas
A. Zimmerman
Managing
Director MZ Group - MZ North America
(949)
259-4987
ALM@mzgroup.us
