Almonty Industries Inc. announced the execution of a binding Offtake Agreement with Tungsten Parts Wyoming Inc. ("TPW"), a U.S.-based defense contractor, and Metal Tech ("MT"), a tungsten processor based in Israel. Under the agreement, TPW has committed to purchase a minimum of 40 metric tons of tungsten oxide per month from Almonty. All material supplied under the agreement is to be exclusively used in U.S. defense applications, including use in missile, drone, and ordnance systems. MT, acting as the designated processor, will convert the tungsten oxide into tungsten metal powder in Israel or the United States, with all processed material intended solely for TPW's U.S. defense production programs. Deliveries will commence upon Almonty's initial production of tungsten oxide in commercially saleable quantities and will be subject to a hard floor price comparable with in-place existing floor prices, subject to grade-specific adjustments in accordance with the terms of the agreement, and with no cap on the upside.
The agreement has an initial term of three years from the date of first delivery, subject to early termination, with automatic annual renewals thereafter. This agreement further positions Almonty as a strategic supplier of critical raw materials for national security and underscores the integration of an upstream supply with allied defense manufacturing capabilities.
