- Tungsten miner Allied Critical Metals (CSE:ACM) signs a US$40 million funding package that fully bankrolls its transition from developer to producer in 2026
- The company also signed a five-year offtake agreement, ensuring predictable revenue
- The small-cap stock sports a 927.50 per cent return since inception in April 2025
In a move that significantly de-risks its development path and solidifies its position in the critical minerals sector, Allied Critical Metals (CSE:ACM) announced a US$40 million funding package, including equity and debt, that fully funds its transition from tungsten developer to producer at its Vila Verde pilot plant in Portugal.
Tungsten is recognized as a critical raw material in Canada, the United States and the European Union, thanks to its widespread applications across the defense, aerospace, manufacturing, automotive, electronics and energy industries. China, Russia and North Korea account for about 87 per cent of global supply and reserves, highlighting the pressing need for secure Western resources.
A vote of high conviction: The US$25 million equity offering
The cornerstone of this announcement is a US$25 million non-brokered private placement. Allied is issuing common shares at C$2.05 each, split between a new strategic investor contributing US$15 million and an existing strategic investor who will contribute, in addition to backstopping the full offering amount. The first tranche of US$10 million is closing immediately, with the remaining US$15 million scheduled to be dispersed by July 17, 2026.
A future-looking US$15 million project facility
Beyond equity, the tungsten miner has secured a five-year, US$15 million financing facility with its existing strategic investor to build Vila Verde and usher it into operational status. The facility carries highly competitive terms, including an interest rate of 2.5 per cent annually, plus the prevailing Secured Overnight Financing Rate, preserving shareholder value while reinforcing Allied Critical’s path to cash flow. The company will make an initial drawdown in Q3 2026, keeping it on target for first tungsten concentrate production by Q4 2026.
Paving the long-term revenue runway
With eyes on on long-term stability, Allied Critical also secured a five-year offtake agreement with its existing strategic investor, who has agreed to purchase 50 per cent of Vila Verde’s tungsten concentrate, with the plant currently holding an operating license for 150,000 tons of ore throughput per year.
The agreement locks in a floor price of US$1,000 per metric ton unit for the 2026 calendar year, protecting against potential volatility in the global tungsten market, and includes provisions for investors to reduce their intake should governmental bodies, such as the US Department of War or the Portuguese Department of Defence, require tungsten for national security purposes.
Looking ahead
The net proceeds from this US$40 million windfall will be deployed across the construction and commissioning of Vila Verde, ongoing exploration at the Borralha tungsten project – whose 2026 preliminary economic assessment estimates an after-tax net present value of US$473 million – as well as general working capital to sustain operations, with Allied Critical’s guaranteed buyer meaning that it has effectively cleared the hurdles that often stymie junior miners.
With production looming in late 2026, the tungsten miner is now uniquely positioned as a near-term supplier of one of the world’s most vital industrial metals.
Allied Critical Metals stock (CSE:ACM) is up by 5.93 per cent on the news trading at C$2.06 as of 1:12 pm ET, sporting a 927.50 per cent return since inception in April 2025.
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