Key Takeaways:
Allied Critical Metals Inc. (CSE: ACM) has secured a U.S.$40 million financing package to bring its Vila Verde Pilot Plant in northern Portugal into production, targeting the fourth quarter of 2026 for its first shipment of tungsten concentrate.
"We are pleased to announce that we have entered into a transformative financing package that will not only fast-track our production of tungsten concentrates but also solidify our balance sheet," Roy Bonnell, Chief Executive Officer of the Company, said. "In a world where tungsten is a precious resource and with pricing is above U.S.$3,000/mtu, this financing is strong support for our plan to fast-track tungsten concentrate production."
The funding consists of a U.S.$25 million equity offering and a U.S.$15 million project finance facility. The package fully funds the company to achieve initial production and meet its objectives over the next 12 months, according to a company statement released on April 24, 2026.
The deal provides a new potential source of the critical metal for Western markets, which are heavily reliant on supply from China, Russia, and North Korea. These countries account for approximately 87 percent of the world's tungsten supply, a metal designated as critical by the U.S. and European Union for its use in defense, aerospace, and manufacturing.
The U.S.$25 million equity portion involves common shares priced at $2.05, with a new strategic investor committing U.S.$15 million and an existing strategic investor back-stopping the full amount. The existing investor will also provide the U.S.$15 million, five-year project finance facility at an interest rate of 2.5 percent plus the prevailing SOFR.
As part of the agreement, the existing investor has secured the right to purchase 50 percent of the tungsten concentrates produced at the pilot plant for five years. The off-take agreement includes a floor price of U.S.$1,000 per metric tonne unit (mtu) for 2026, providing revenue certainty against a backdrop of current prices trending above U.S.$3,000/mtu.
The company expects the first drawdown from the project financing facility to occur in the third quarter of 2026. The proceeds will be used for the development of the Vila Verde Pilot Plant and ongoing work at the nearby Borralha Tungsten Project, one of the largest undeveloped tungsten resources in the European Union. The off-take agreement includes flexibility for agencies like the United States Department of War or the Portuguese Ministry of Defence to purchase tungsten from the company, highlighting the project's strategic importance.
This article is for informational purposes only and does not constitute investment advice.
