Allied Critical details US$40 million financing for tungsten project
Allied Critical Metals Inc. [ACM-CSE, ACMIF-OTCQB, 0VJ0-FSE] has announced details of a US$40 million strategic investment, including a non-brokered private placement offering of common shares that is expected to raise US$25 million.
The company said proceeds are earmarked for its Villa Verde pilot plant project in Portugal, where the first tungsten concentrate production is targeted for the fourth quarter of 2026.
In addition, the company said an existing strategic investor has agreed to provide the company with US$15 million in project financing for the Villa Verde project, and has entered into an off-take agreement with the company for 50% of the tungsten concentrate produced at the pilot plant. The offtake agreement is subject to a floor price of US$1,000 per tonne unit for the calendar year 2026, subject to customary price revisions.
It said the non-brokered private placement offering will consist of common shares issued at a price equal to the 10-day volume weighted average trading price of the shares on the Canadian Securities Exchange (CSE) on the date of issuance, being $2.05 per share.
The company said the new strategic investor will invest US$15 million of the offering, subject to due diligence and other customary closing conditions. The existing strategic investor has agreed to back-stop the entire offering with the first tranche of US$10 million closing immediately, subject to approval of the CSE, and the remaining US$15 million of the offering closing on July 17, 2026.
Under an agreement dated April 24, 2026, the existing strategic investor has pledged to provide a project financing facility to the company either in the form of a bond issue or as a senior secured term loan in the amount of US$15 million for a term of five years to fund construction and expenses at the pilot plant.
Allied shares advanced on the news, rising 5.7% or 11 cents to $2.05. The shares currently trade in a 52-week range of $2.28 and 20 cents.
Under the off-take agreement, Allied has pledged to sell to the existing strategic investor, 50% of the tungsten concentrate produced at the pilot plant based on its current license for production of 150,000 tonnes per year of ore throughput for five years.
In the event that the license increases by up to an additional 150,000 tonnes per year, the existing strategic investor will have the right t purchase 25% of the additional entitlement of the product on the same terms.
The Villa Verde Tungsten-Tin project is located 45 kilometres south of the company’s Borralha Tungsten Project. It consists of a pre-existing quarry operation that is capable of near-term cash flow with construction and commissioning intended for this year. Quarry permitting would allow for processing of 150,000 tonnes annually. The design capacity would allow for 250 tonnes of W03 per year, according to the company, which may subsequently be increased to 300,000 tonnes annually. The estimated capital expenditure for the pilot plant is $7.9 million (plus $2.9 million for a later expansion).