Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 76

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 76
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 of the Panasqueira Mine
in Portugal. Almonty has implemented a planned closure of Daytal’s operations by placing the Los Santos Mine into care and maintenance
in February 2020. The Company is planning to re-open the Los Santos Mine to restart production from tailings inventories in early
2026, pending completion of internal planning and certain external processes, including those related to operational readiness and
regulatory matters. The project pipeline also includes the Valtreixal Mine, which is under exploration and development.
Almonty also has a significant molybdenum resource on a separate property adjacent to the tungsten orebody at the Sangdong Mine. Due
to distinct geological and spatial characteristics, the molybdenum and tungsten zones are considered separate, standalone projects.

The current mine and
processing plant construction at the Sangdong Mine (Phase I) is expected to begin production in the second half of 2025. Once fully operational,
the targeted ore throughput capacity is expected to reach around 640,000 tonnes per year. The Company expects to increase its throughput
capacity up to 1.2 million tonnes through the Phase II planned expansion. This expansion is fully permitted under existing Phase I approvals,
and during the development of Phase I, some components have been built which may support a higher throughput or expansion. It is expected
that, subject to positive operating results from Phase I and prevailing market conditions, Phase II could be advanced as early as 2026.
This would involve initiating detailed engineering and permitting activities, followed by potential construction and commissioning. If
Phase II is advanced in 2026, it is expected that first ore production under Phase II could commence in 2027. The Phase II expansion
is expected to unlock scale economies and support margin enhancement. Advancement to Phase II is contingent upon a formal decision point
following the evaluation of Phase I performance. Any additional tungsten concentrate produced as part of the Phase II expansion could
be directed to the Tungsten Oxide Facility, which the Company is currently assessing as a potential vertical integration opportunity.

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Additionally, Almonty
is planning an extension of the Panasqueira Mine, with the potential to extend the life of the mine and significantly increase production
capacity. Key objectives of this extension include increased ore throughput and improved average head grade, while continuing to serve
customers who rely on the mine’s concentrate.

The Company is continuously
in the process of seeking additional potential offtake partners and