With China controlling 80 per cent of global tungsten production and recently instituting new export restrictions on the critical metal – which commands a multi-billion-dollar market spanning everything from jet engines, to lightbulbs, to semiconductors – high-quality projects in conflict-free countries will likely rise in demand, offering investors upside to harvest.
A prospective name to run through your due diligence process is Allied Critical Metals, a private mineral explorer and developer that recently completed the financing for its reverse takeover (RTO) transaction with DeepRcok Minerals (CSE:DEEP). Once Allied goes public later this year, investors will be able to gain exposure to a pair of untapped, 100-per-cent owned tungsten projects in Portugal – a top 10 tungsten producer – with the potential to play value-added roles in the Western supply chain. Here’s a breakdown:
- The Borralha project, 80 km northeast of Porto, features a preliminary historical inferred resource of about 18 million tons of mineralized material grading 1,420 g/t tungsten trioxide (WO3). The project produced 10,280 tons of wolframite concentrate at an average grade of 66 per cent WO3 from 1904-1985. A definitive feasibility study and large-scale commercial production are planned for 2025.
- The Vila Verde project, 45 km south of Borralha, houses a preliminary historical inferred resource of 7.3 million mineralized tons, including 4 million tons grading 1,347 g/t WO3 and 264 g/t tin (Sn) at the Cumieira deposit and 3.3 million tons grading 961 g/t WO3 at the Porqueira deposit. Preparations for pilot production are underway.
Backed by mining licenses up to 150,000 tons per year, high-grade mineralization enabling low-cost production, and a leadership team accomplished across multiple commodities, including tungsten, Allied’s properties are on a near-term path to monetizing tungsten demand and establishing the company as a cooperative partner.
With funding in hand, management can now focus on operational progress, generating positive news flow to increase investor awareness and keep its stock price in line with potential value creation.
Roy Bonnell, Allied Critical Metals’ chief executive officer, echoed this view in a statement following the closing of the RTO financing, noting that, “as China reduces its exports of this critical mineral, our operations in Portugal have never been more crucial. This funding will enable us to continue development drilling, start on our pilot plant, enhance sustainability and eventually meet the growing global demand for tungsten. We are well-positioned to provide a reliable, high-quality supply of tungsten to key industries, and we remain committed to delivering value to our shareholders and contributing to strategic resource security.”
Readers can learn more about Allied Critical Metals by reading the investors page on the company’s official website.
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(Top image: Allied Critical Metals)
