Deutsche Rohstoff AG

M&A Activity • Jun 30, 2014

News Details

Corporate | 30 June 2014 22:30

Deutsche Rohstoff AG: Deutsche Rohstoff disposes Australian Wolfram Camp Mine

Deutsche Rohstoff AG / Key word(s): Disposal

30.06.2014 22:30

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Deutsche Rohstoff disposes Australian Wolfram Camp Mine
Sales price of 18 million Canadian Dollar/Shareholding in larger tungsten
company

Heidelberg/Toronto. Deutsche Rohstoff AG signed a contract today for the
sale of all shares of the 100% owned subsidiaries Wolfram Camp Mining and
Tropical Metals. The companies are the operating entities for the Wolfram
Camp tungsten and molybdenum mine in Queensland, Australia. The purchase
price amounts to 18 million Canadian Dollar (CAD), which converts to
approximately 12.3 million Euro at current exchange rates. The buyer is the
Canadian company Almonty Industries that operates the Los Santos tungsten
mine in Spain. The shares of Almonty are traded on the Canadian TSX Venture
exchange in Toronto.

According to the contract the purchase price consists of the following
components:

• Deutsche Rohstoff will receive close to 12.2 million shares to be
  issued by Almonty that represent a value of CAD 10.5 million and
  translate into a shareholding of Altmonty's issued stock of 24.9%.

• For the remaining share of the purchase price of close to CAD 7.5
  million, Deutsche Rohstoff will receive a convertible bond. The bond
  has a maturity of 2.5 years at an interest rate of 4%. DRAG has the
  option to convert the bond into shares of Almonty at a conversion price
  of CAD 1.45.

The completion of the contract is subject to several conditions to be
fulfilled. Part of the conditions is the approval of the shareholder
meeting of Almonty as well as the consent to the transaction by third
parties. Especially the consent of the Toronto Stock Exchange and the
declaration of no objection for an investment by a foreign party, to be
issued by Australian authorities, are necessary. Both signing parties of
the contract expect a closing of the transaction by the end of August.

Titus Gebel, CEO of Deutsche Rohstoff AG, commented: "From our perspective,
Almonty is the ideal buyer for Wolfram Camp. The management team has
significant experience with tungsten mining and has demonstrated that it
can successfully operate mines on a long-term basis. DRAG will still
maintain a significant share in a larger tungsten mining company. We are
confident that this shareholding will gain further value due to the strong
fundamentals of tungsten as well as the favourable market position of
Almonty."

Lewis Black, Chief Executive Officer of Almonty commented: "We are pleased
to have acquired the Wolfram Camp mine and to have almost doubled the size
of Almonty's tungsten operations. WCM is a wolframite producing mine which
we consider to be similar in many respects to the Panasqueira project that
was previously successfully renovated and subsequently sold by the current
Almonty management team when it was held by Primary Metals Inc. Our
technical team, having spent the majority of their careers working with
wolframite ore, and now scheelite ore at the Los Santos Project, is highly
confident regarding the upside potential of WCM. The addition of DRAG as a
major shareholder in Almonty is also welcome and will allow DRAG and its
shareholders to maintain their tungsten exposure in a much larger entity.
Upon completion of the transaction Almonty will be the only listed company
with two operating tungsten mines, producing both scheelite and wolframite
concentrate."

Heidelberg, 30 June 2014

Deutsche Rohstoff (Heidelberg, Germany), listed in the Entry Standard
segment of Frankfurt Stock Exchange, is establishing a new primary
producer. The company's focus is placed on oil & gas and so called high
tech metals such as tin, tungsten, and rare earth metals. All projects are
located in political stable countries with high environmental standards.
The business concept is based on redeveloping deposits, which have been
well explored in the past. For more information please visit
www.rohstoff.de.

Contact:

Deutsche Rohstoff AG
Thomas Gutschlag
Tel. +49 6221 871 000
info@rohstoff.de

30.06.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language: English
Company: Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24
69117 Heidelberg
Germany
Phone: 06221-87100-11
Fax: 06221-87100-22
E-mail: gutschlag@rohstoff.de
Internet: www.rohstoff.de
ISIN: DE000A0XYG76, DE000A1R07G4,
WKN: A0XYG7, A1R07G
Indices: Entry Standard (Performance TOP 30)
Listed: Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in
Open Market (Entry Standard)

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