Elmet secures $450 million government investment and tungsten stockpile contract

Elmet ($ELMT) announced a $450 million committed investment from the US Department of War to expand tungsten mining, processing and manufacturing. Funding begins with a $200 million drawdown at closing. The government receives redeemable preferred equity, warrants representing up to 19.9% of post-transaction common stock, and board representation rights. Planned spending includes more than $165 million across Elmet’s US manufacturing facilities.

Separately, its subsidiary won a Defense Logistics Agency stockpile contract with a $2 billion ceiling and a guaranteed funded commitment of $150 million. Deliveries are intended to follow new supply becoming available, rather than divert existing material from manufacturers. The ceiling is not guaranteed revenue, and the investment commitment should not be confused with customer sales.

Sources:

• Elmet — financing and stockpile contract