Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 62

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 62
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sufficient excess cash flow for distribution as it anticipates that it will reinvest the majority of, if not all, future earnings, if
any, in the development and growth of its business. Therefore, investors may not receive any funds unless they sell their Common Shares,
and investors may be unable to sell their Common Shares on favourable terms or at all. The Company cannot give any assurance of a positive
return on investment or that investors will not lose the entire amount of their investment in Common Shares. Prospective investors seeking
or needing dividend income or liquidity are discouraged from purchasing Common Shares.

Treatment as a “Passive
Foreign Investment Company” (“PFIC”)

Although the Company has not made a
determination in this regard, U.S. investors should be aware that they could be subject to certain adverse U.S. federal income tax consequences
in the event that the Company is classified as a PFIC within the meaning of Section 1297 of the United States Internal Revenue Code of
1986, as amended for any year during a U.S. holder’s holding period. The determination of whether the Company is a PFIC for a taxable
year depends, in part, on the application of complex U.S. federal income tax rules, which are subject to differing interpretations, and
the determination will depend on the composition of the Company’s income, expenses and assets from time to time and the nature
of the activities performed by the Company’s officers and employees. In addition, there is limited authority on the application
of the relevant PFIC rules to entities such as the Company. Accordingly, even if the Company made a determination regarding its PFIC
status, there can be no assurance that the Internal Revenue Service would not challenge the Company’s determination. In addition,
whether any corporation will be a PFIC for any tax year depends on its assets and income over the course of such tax year, and, as a
result, the Company’s PFIC status for its current tax year and any future tax year cannot be predicted with certainty. The U.S.
Treasury Department has not issued specific guidance on how the income and assets of a non-U.S. corporation such as the Company will
be treated under the PFIC rules. Prospective investors should consult their own tax advisers regarding the likelihood and consequences
of the Company being treated as a PFIC for U.S. federal income tax purposes, including the advisability of making certain elections that
may mitigate certain possible adverse U.S. federal income tax consequences but may result in the