Almonty Industries (TSX:AII,ASX:AII,OTCQX:ALMTF) has entered into a strategic partnership agreement with government relations and business development firm American Defense International (ADI).
Toronto-based Almonty is currently strengthening its positioning within the critical metals sector, aiming to support the US government and the American defense and technology industries.
On February 27, Almonty announced that its shareholders had approved its proposed continuance from Canada to Delaware, US, signifying the start of its redomiciling to the US.
Speaking about the company’s new partnership with ADI, President and CEO Lewis Black explained that it will help position Almonty as a supplier of tungsten and molybdenum for the US.
“As we move to finalize our redomiciling to the United States, ADI’s expertise and relationships, forged through working with industry-leaders such as SpaceX, will position us to strengthen relationships with key stakeholders in a rapidly evolving global landscape,’ he said in a Tuesday (March 18) press release.
Last month, Almonty signed a molybdenum offtake deal with SpaceX Korean contractor SeAH M&S, wherein SeAH will purchase 100 percent of the material produced from Almonty’s Sangdong molybdenum project in Korea.
Through the partnership with ADI, Almonty hopes to enhance its engagement in the US market by reinforcing its alignment and support of government policies and industry priorities.
The US domestication is still subject to court and other regulatory approvals.
Almonty currently holds tungsten projects in Portugal, Spain and Korea. While it does not have projects in the US, the country is becoming more important in the company’s strategic positioning.
Black said in Tuesday’s release that it expects redomiciling to enhance the company’s competitiveness in light of geopolitical tensions and policies and the recent shift to domestic sourcing of critical minerals.
The company’s move to redomicile also comes amid heightened tariff concerns.
US President Donald Trump has imposed widespread tariffs, including an additional 10 percent tariff on Chinese imports; China has responded with export controls on US goods, including tungsten.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.