Almonty Industries Inc. (TSX: AII, ASX: AII, OTCQX: ALMTF, FRA: ALI) is set to transition its incorporation from Canada to the State of Delaware, a move that underscores the company’s strategic focus on the growing importance of the U.S. market for critical materials such as tungsten and molybdenum. This decision, described as a “U.S. domestication,” will allow Almonty to maintain its listings on the Toronto Stock Exchange and the Australian Securities Exchange while aligning its corporate structure with a significant portion of its shareholder base.
The choice of Delaware as the new domicile is particularly noteworthy due to its robust regulatory framework, which is well-regarded for its clarity and guidance on corporate governance. The Delaware General Corporation Law (DGCL) offers extensive legal precedents that are expected to benefit both the company and its shareholders by providing clear obligations for directors and officers.
Lewis Black, CEO of Almonty, emphasized that relocating to the U.S. enhances the company’s ability to access key markets and reinforces its commitment to growth and operational agility. He stated, “By changing our base of operations and jurisdiction of incorporation from Canada to the United States, we are aligning our corporate structure with the location of a significant portion of our shareholder base.”
This strategic move comes at a time when global geopolitical tensions are increasingly affecting supply chains for critical materials. Notably, new restrictions from the U.S. Department of Defense, effective January 2027, will prohibit sourcing critical materials like tungsten from countries deemed adversarial, including China, Russia, Iran, and North Korea. These measures aim to bolster domestic sourcing and reduce reliance on foreign adversaries.
Additionally, recent U.S. tariff increases on imports from China and Chinese export restrictions on dual-use technologies have further complicated the landscape for critical materials. As a result, Almonty’s Sangdong Mine in South Korea is poised to become a vital Western source for tungsten and molybdenum, with 45% of its potential long-term output already committed to U.S. markets through an agreement with Global Tungsten & Powders in Pennsylvania.
Production at Sangdong is expected to ramp up by mid-2025, positioning it as a cornerstone for Western tungsten supply chains amidst rising demand and geopolitical uncertainties. Almonty’s management believes that establishing a base in the U.S. will significantly enhance its long-term competitiveness in this dynamic market.
The decision for U.S. domestication has received unanimous approval from Almonty’s Board of Directors and executive management team, reflecting their confidence in this strategic realignment with the company’s long-term objectives. However, completion of this transition is contingent upon court, shareholder, and regulatory approvals.
As Almonty moves forward with this plan, it acknowledges that unforeseen regulatory or operational challenges may impact the timeline but remains committed to keeping stakeholders informed throughout the process. The company anticipates completing the relocation during the first quarter of 2025.
Almonty Industries Inc., headquartered in Toronto, Canada, specializes in mining, processing, and shipping tungsten concentrate from various global locations including Spain and Portugal. The company’s strategic initiatives aim not only to enhance operational efficiency but also to contribute significantly to securing independent sources of critical minerals essential for advanced technologies and national security.
