US$15 Million Tungsten Financing Moves Toward Closing as 20,000-Meter Drill Campaign Advances

Source: Streetwise Reports 08/07/2026

Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE) is working to close a US$15 million financing tranche as it funds a 20,000-meter Borralha drill campaign and advances its Vila Verde tungsten pilot plant.

Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE) is continuing to work toward closing the second tranche of its previously announced US$25 million non-brokered private placement, according to an August 4 update.

The second tranche consists of US$15 million in common shares priced at US$2.05 per share and involves an existing strategic investor and a new strategic investor. The existing strategic investor confirmed to the company its intention to backstop the contemplated investment by the new strategic investor.

The company said the closing of the second tranche follows significant due diligence by each of the strategic investors. The tranche is part of a broader financing comprising US$25 million in equity and a US$15 million project financing facility.

“The company is financed to complete its 20,000-meter drilling campaign at the Borralha project and has already ordered certain long-lead items for the Vila Verde pilot plant. Securing the second tranche provides further strong support for our plan to fast-track tungsten concentrate production,” CEO Roy Bonnell said in the announcement.

Tungsten Sector Draws Focus on Supply Security and Pricing

An August 5 report from Interesting Engineering noted that the United States relies heavily on imports for the strategic metal.

Later on August 5, Bloomberg News reported that the United States would prohibit exports of tungsten scrap and recycled battery materials beginning later in the month, requiring suppliers of tungsten waste to sell the material domestically unless they received exemptions. The restriction was set to remain in place for one year and followed a measure giving officials authority to restrict exports of industrial waste containing critical minerals and materials. “The President stated that the inadequate supply of CMMs poses an increasing risk to our national defense and security, and it is imperative that the United States take immediate action to secure the supply of recoverable CMMs,” the Department of Commerce said in the Federal Register statement cited by Bloomberg. The report identified tungsten as a metal used in military armor, ammunition, and precision tools and noted that it was among the metals subject to Chinese export controls.

Visual Capitalist reported on August 5 that “Tungsten was the clear outlier” among 27 selected minerals tracked using data from the International Energy Agency’s Global Critical Minerals Outlook 2026. Tungsten prices had risen 622% between January 2025 and April 2026, more than three times the increase recorded by the second-ranked mineral. The report attributed pressure on tungsten supplies to strong demand and China’s export controls, while noting the metal’s use in cutting tools, aerospace components, electronics, and defense applications. More broadly, Visual Capitalist said rising demand from the energy, defense, and high-tech industries had added pressure to critical mineral markets already affected by supply constraints.

Analysts Highlight Production Plans and Project Development

Ventum Capital Markets analyst Surya Sankarasubramanian maintained a “Buy” rating on Allied Critical Metals on June 18 and raised the firm’s price target to CA$2.95 from CA$2.75. The report preceded the company’s announcement of its Venise Breccia drilling results. “We like Allied because it offers near-term production potential through Vila Verde and longer-term scale potential through Borralha, where current exploration is poised to augment that potential,” Sankarasubramanian wrote.

In a July 13 company-sponsored research update, Diamond Equity Research maintained a CA$3.50 valuation for Allied Critical Metals when the shares were trading at CA$2.30. Analyst Hunter Diamond said the newly confirmed Venise Breccia introduced an additional potential source of resource growth beyond the current Borralha development plan. The firm wrote that the discovery “meaningfully enhances Borralha’s exploration profile by introducing an additional avenue for future resource growth beyond the assumptions incorporated in the current PEA.”

Diamond Equity Research said its current valuation assigned no value to the Venise Breccia because the target remained at an early exploration stage and had not been incorporated into a compliant mineral resource estimate. The firm’s valuation used a DCF-based NAV methodology weighted at 75% and a comparable-company analysis weighted at 25%. For Borralha, it modeled the 13.0-million-tonne measured and indicated resource as the core operating base over an 11-year mine life and treated the 7.7-million-tonne inferred resource as lower-confidence mine-life extension optionality. Vila Verde was modeled as a near-term pilot plant operation with initial throughput of 150,000 tonnes per year over five years. The blended approach produced an illustrative equity value of CA$629.04 million, or CA$3.50 per share, contingent on successful execution.

Diamond Equity Research disclosed that Allied Critical Metals had paid the firm US$50,000 for company-sponsored research services that commenced on April 30 and were billed annually.

Drilling, Pilot Plant, and Permitting Programs Advance

At the Borralha Tungsten Project in northern Portugal, Allied Critical Metals had a fully funded 20,000-meter drill program underway targeting resource expansion and potential extension of the initial 11-year mine plan. The company’s presentation stated that only about half of the Santa Helena Breccia zone had been drilled, with the breccia and broader property identified as priorities for upcoming work programs.

Borralha’s updated mineral resource estimate included 13.0 million tonnes of measured and indicated resources grading 0.21% WO₃ and 7.7 million tonnes of inferred resources grading 0.18% WO₃. The project received an Environmental Impact Declaration in January 2026 and was advancing through Portugal’s mine licensing pathway. The presentation listed the Project of Execution and RECAPE stage as advancing, and construction and production as targeted for approximately 2027.

The company’s initial preliminary economic assessment for Borralha outlined an initial 11-year mine plan with a processing rate of 1.4 million tonnes per year at 0.20% WO₃. The operating profile included average annual production of approximately 1,708 tonnes of WO₃ and peak annual production of 2,388 tonnes of WO₃, using underground long-hole stoping and gravity-dominant processing with approximately 75% recovery.

At Vila Verde, the company was advancing an Experimental Mining License with the Portuguese government. The presentation stated that the license would allow up to 150,000 tonnes per year of mineralized material until a full-scale mining license is granted following completion of a feasibility study. Quarry permitting would initially allow 150,000 tonnes per year, with potential capacity of up to 300,000 tonnes per year.

The Vila Verde pilot plant was fully funded through a binding US$15 million senior secured project financing facility bearing interest at SOFR plus 2.5% per year. Construction was scheduled to commence in 2026, with the first tungsten concentrate production targeted for the fourth quarter of 2026. The plant was designed for 150,000 tonnes per year of mineralized material, with the presentation identifying potential subsequent capacity of 300,000 tonnes per year. Tailings and alluvial material were designated to supply the plant, with an estimated average feedstock grade of 0.21% WO₃ for plant design parameters. Processing was to consist of crushing and grinding, followed by gravimetric and magnetic concentration.

Allied Critical Metals also had a binding offtake agreement covering 50% of the pilot plant’s tungsten concentrate production for five years, subject to a 2026 floor price of US$1,000 per mtu. The agreement provided flexibility for purchases by the U.S. Department of War and Portuguese Ministry of Defence. The company had also signed a letter of intent with Global Tungsten & Powders in Pennsylvania for the sale of tungsten concentrate and was in discussions with additional global refineries for the remaining production. [OWNERSHIP_CHART-11251]

The company’s milestone timeline also lists a 1,250-meter Vila Verde drill program for the third quarter of 2026, following historical drilling re-assays scheduled for the second quarter. The presentation stated that 17 historical diamond drill holes totaling 2,103 meters had identified a 2.1-kilometer by 1-kilometer tungsten-tin mineralized system at the Cumieira zone and a 1-kilometer by 500-meter tungsten-tin mineralized system at Porqueira.

Ownership & Share Information¹

Allied Critical Metals Inc. has a market cap of CA$416.22 million, with 180.96 million shares outstanding. The company’s 52-week range is CA$0.29-CA$2.46.

Institutions own 16% of shares, while Management & Insiders own 31%. The remaining 53% of shares are held by Retail.

Frequently Asked Questions

What is Allied Critical Metals Inc. (ACM) working on in Portugal?

Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE) was focused on two historical tungsten mining projects in northern Portugal, the Borralha Tungsten Project and the Vila Verde Tungsten-Tin Project. Its activities included a 20,000-meter drilling campaign at Borralha and development of a pilot plant at Vila Verde.

How much financing is Allied Critical Metals working to close?

Allied Critical Metals was continuing to work toward closing the second tranche of a US$25 million non-brokered private placement. The second tranche totaled US$15 million in common shares priced at US$2.05 per share and involved an existing strategic investor and a new strategic investor. The existing strategic investor confirmed its intention to backstop the contemplated investment by the new strategic investor.

What is the Allied Critical Metals US$40 million financing package?

The financing package included a US$25 million equity offering and a US$15 million project financing facility. The US$15 million project financing facility was designated to fund the Vila Verde pilot plant.

When is the Vila Verde tungsten pilot plant expected to begin production?

The company’s presentation targeted first tungsten concentrate production from the Vila Verde pilot plant for the fourth quarter of 2026. Construction was scheduled to commence in 2026.

How much tungsten can the Vila Verde pilot plant process?

The Vila Verde pilot plant was designed to process 150,000 tonnes per year of mineralized material, with potential to subsequently increase capacity to 300,000 tonnes per year. Tailings and alluvial material were designated to supply the plant, with an estimated average feedstock grade of 0.21% WO₃ for plant design parameters.

Does Allied Critical Metals have a tungsten offtake agreement?

Yes. The company had a binding offtake agreement covering 50% of Vila Verde pilot plant tungsten concentrate production for five years, subject to a 2026 floor price of US$1,000 per mtu. It had also signed a letter of intent with Global Tungsten & Powders for the sale of tungsten concentrate and was in discussions with additional global refineries for the remaining production.

What is the Borralha Tungsten Project resource estimate?

Borralha’s updated mineral resource estimate included 13.0 million tonnes of measured and indicated resources grading 0.21% WO₃ and 7.7 million tonnes of inferred resources grading 0.18% WO₃.

How much drilling is Allied Critical Metals completing at Borralha?

The company said it was financed to complete a 20,000-meter drilling campaign at Borralha. The program targeted resource expansion and potential extension of the project’s initial 11-year mine plan.

What did the Borralha preliminary economic assessment show?

The initial Borralha PEA outlined an 11-year mine plan with a processing rate of 1.4 million tonnes per year at 0.20% WO₃. It included average annual production of approximately 1,708 tonnes of WO₃ and peak annual production of 2,388 tonnes of WO₃.

Why have tungsten prices increased?

Visual Capitalist reported on August 5, using International Energy Agency data, that tungsten prices rose 622% between January 2025 and April 2026. The report said strong demand and China’s export controls placed pressure on supplies. It identified cutting tools, aerospace components, electronics, and defense among tungsten’s applications.

What is the United States doing to secure tungsten supplies?

Bloomberg News reported on August 5 that the United States would prohibit exports of tungsten scrap beginning later in the month, with suppliers required to sell domestically unless they received exemptions. The restriction was set to remain in place for one year and followed a measure allowing officials to restrict exports of industrial waste containing critical minerals and materials.

What price targets do analysts have for Allied Critical Metals stock?

Ventum Capital Markets analyst Surya Sankarasubramanian reiterated a “Buy” rating on June 18 and increased the firm’s Allied Critical Metals price target to CA$2.95 from CA$2.75. Diamond Equity Research initiated coverage on June 22 with a CA$3.50 price target.

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Important Disclosures:

1. Allied Critical Metals Inc. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Allied Critical Metals Inc.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

( Companies Mentioned: ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE, )