Company: ALM
Filing Date: 2025-07-11
Form Type: F-10/A
Source: 0001641172-25-018741
Chunk: 33

Company: Almonty Industries Inc.
Filing Date: 2025-07-11
Form: F-10/A
Chunk 33
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ide Facility

Project Financing and Capital Cost
Overrun Risk

The Company has not
yet secured all of the financing required to construct and commission its projected development of the Tungsten Oxide Facility. While
a non-binding letter of intent has been entered into with KfW for up to $50 million in project financing, the finalization of this financing
facility and any additional required funding remains subject to various conditions including due diligence, negotiation of definitive
agreements and satisfaction of conditions precedent, such as receipt of all necessary permits.

The estimated capital
cost of the Tungsten Oxide Facility is based on preliminary engineering studies and may be subject to significant change as the project
advances. Unanticipated increases in construction, equipment, labor, or regulatory compliance costs could result in a funding shortfall.
There can be no assurance that the Company will be able to secure the necessary project financing on acceptable terms or at all. Failure
to obtain sufficient financing or to control capital costs could delay, suspend, or prevent the construction and commissioning of the
Tungsten Oxide Facility, which could have a material adverse effect on the Company’s growth strategy, financial condition, and
results of operations.

Execution and Construction Risk

The Tungsten Oxide
Facility is a large-scale, technically complex project that remains in the pre-construction stage. The successful completion of the project
is subject to numerous risks, including but not limited to: design and engineering challenges, procurement and delivery of specialized
equipment, contractor and labor availability, construction delays, cost overruns, and unforeseen technical or environmental issues. Any
material delay, technical failure, or increase in costs could adversely affect the project’s economics and the Company’s
financial position. There can be no assurance that the Tungsten Oxide Facility will be completed on schedule, within budget, or at all,
or that it will operate as intended.

Permitting and Regulatory Risk

The development
and operation of the Tungsten Oxide Facility are subject to obtaining and maintaining various permits, licenses, and regulatory approvals
from local, regional, and national authorities in South Korea. The permitting process can be lengthy, complex, and subject to change,
and there is no guarantee that all necessary approvals will be obtained in a timely manner or at all.

Operational Risks

Production

Almonty prepares
estimates of future production, total cash costs and capital costs of production for particular operations. No assurance can be given
that such estimates will be achieved. Failure