Allied Critical Metals Announces Transformative U.S.$40 Million Financing Package to Fast-Track Tungsten Concentrates Production
Allied Critical Metals Announces
Transformative U.S.$40 Million Financing
Package to Fast-Track Tungsten Concentrates
Production
Highlights:
Strategic investment of U.S.$40 million comprised of U.S.$25 million equity financing and U.S.$15
million in project financing for the Vila Verde Pilot Plant.
Allied Critical Metals is fully funded to achieve initial production at the Vila Verde Pilot Plant and
meet its stated objectives over the next 12 months.
Targeting the fourth quarter of 2026 for first tungsten concentrate production from the Vila Verde
Pilot Plant.
Off-Take Agreement for 50% of tungsten concentrate production from the Vila Verde Pilot Plant
secured with a 2026 floor price of U.S.$1,000/mtu.
Off-Take Agreement provides flexibility for governmental agencies, including the United States
Department of War and the Portuguese Ministry of Defence, to purchase tungsten concentrates
from the Company.
Vancouver, British Columbia--(Newsfile Corp. - April 24, 2026) - Allied Critical Metals Inc. (CSE: ACM)
(OTCQB: ACMIF) (FSE: 0VJ0) ("
Allied
" or the "
Company
") is pleased to announce a non-brokered
private placement offering of common shares at a price of $2.05 per share (the "
Offering
") with an
existing strategic investor (the "
Existing Strategic Investor
") and a new strategic investor (the "
New
Strategic Investor
", collectively the "
Strategic Investors
") for gross proceeds of U.S.$25 million. In
addition to the Offering, the Existing Strategic Investor has also agreed to provide the Company with
U.S.$15 million in project financing to build the Company's Villa Verde pilot project (the "
Pilot Plant
")
and has entered into an off-take agreement (the "
Off-Take Agreement
") with the Company for 50% of
the tungsten concentrates produced at the Pilot Plant.
The Off-Take Agreement is subject to a floor price
of U.S.$1,000/mtu for the calendar year 2026, subject to customary price revisions.
"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. The Pilot Plant
at Vila Verde is on track this year to bring online tungsten concentrates to a global market that is starved
for the metal," commented
Roy Bonnell, Chief Executive Officer of the Company
. "Securing two
strategic investors validates our strategy of fast-tracking tungsten concentrate production and enables us
to be fully funded until the mine construction of the Borralha Tungsten Project, both of which are
significant milestones for our Company. 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."
Equity Offering Terms
The Offering will be comprised of common shares of the Company (the "
Shares
" and each, a "
Share
")
issued at a price equal to the 10-day volume weighted average trading price of the Shares on the
Canadian Securities Exchange (the "
CSE
") at the date of issuance (the "
Price
"), being $2.05 per
Share. The number of Shares to be issued will be issued in accordance with the policies of the CSE.
The Shares will be subject to the hold periods required by applicable securities laws. The New Strategic
Investor will invest U.S.$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 U.S.$10 million closing immediately, subject to approval of the CSE, and the remaining
U.S.$15 million of the Offering closing by July 17, 2026.
The Company intends to use the net proceeds of the Offering for the development of the Pilot Plant,
ongoing exploration and development activities on the Borralha Tungsten Project and for additional
working capital.
The Offering is subject to approval of the CSE.
Vila Verde Pilot Plant - Project Finance Terms
Pursuant to a binding agreement dated April 24, 2026, the Existing Strategic Investor has agreed to
provide a project financing facility (the "
Facility
") to the Company either in the form of a bond issue or as
a senior secured term loan facility in the aggregate principal amount of U.S.$15 million for a term of five
years to finance the construction and expenses of the Pilot Plant. The Facility bears interest of the
aggregate of 2.5% per annum and the prevailing term secured overnight financing rate ("
SOFR
")
payable, either quarterly or semi-annually on the last day of each interest period, in arrears. The Facility
also bears a 1% per annum commitment fee on the unutilized and uncanceled portion of the Facility. The
Company will also pay an arrangement fee equal to 0.5% of the Facility.
The Facility is secured by the
assets that are comprised of the Pilot Plant, excluding the mineral concessions of the Vila Verde
Tungsten Project. The Company expects first drawdown under the Facility to occur in the third quarter of
2026.
Vila Verde Pilot Plant - Off-Take Agreement
Pursuant to the terms of the Off-Take Agreement, the Company has agreed to sell to the Existing
Strategic Investor, 50% of the tungsten concentrates produced at the Pilot Plant based on its current
license for production of 150,000 tonnes per year of ore throughput (the "
Product
") for a period of 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 to purchase 25% of the additional entitlement of the Product on the
same terms. In the event that any governmental agencies, including the United States Department of War
or the Portuguese Department of Defence, requests the purchase of the Product from the Company, the
Existing Strategic Investor has agreed that it will act reasonably in reducing the percentage of Product it
will take from the Company. The Off-Take Agreement includes a price floor of U.S.$1,000/mtu for
tungsten concentrates produced in 2026.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the
United States, nor shall there be any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities being offered have not been, nor will they be,
registered under the Securities Act of 1933, as amended (the "
1933 Act
") or under any U.S. state
securities laws, and may not be offered or sold in the United States absent registration or an applicable
exemption from the registration requirements of the 1933 Act and applicable state securities laws.
The Canadian Stock Exchange does not accept responsibility for the adequacy or accuracy of
this release.
About Allied Critical Metals Inc.
Allied Critical Metals Inc. is a Canadian-based mining company focused on the advancement and
revitalization of its 100%-owned Borralha Tungsten Project and the Vila Verde Tungsten Project in
northern Portugal.
The Borralha Project is one of the largest undeveloped tungsten resources within the European Union
and benefits from a favourable Environmental Impact Declaration (DIA), positioning the Project for
advancement toward feasibility and development. Vila Verde represents additional exploration upside
within the same strategic jurisdiction.
Tungsten has been designated a critical raw material by the United States and the European Union due
to its strategic importance in defense, aerospace, manufacturing, automotive, electronics and energy
applications. Currently, China, Russia and North Korea account for approximately 87% of global
tungsten supply and reserves, highlighting the importance of secure western sources.
Further details regarding the Borralha Project are available in the Company's NI 43-101 Preliminary
Economic Assessment Technical Report dated April 14, 2026, filed on SEDAR+ at
www.sedarplus.ca
and on the Company's website at
www.alliedcritical.com
.
ON BEHALF OF THE BOARD OF DIRECTORS
"Roy Bonnell"
CEO and Director
Additional information is also available by contacting the Company:
Dave Burwell
Vice President, Corporate Development
Tel:403-410-7907
Toll Free: 1-800-221-0915
Please also visit our website at
www.alliedcritical.com
.
Also visit us at:
LinkedIn:
https://www.linkedin.com/company/allied-critical-metals-inc/
X:
https://x.com/@alliedcritical/
Facebook:
https://www.facebook.com/alliedcriticalmetals/
Instagram:
https://www.instagram.com/alliedcriticalmetals/
The Canadian Securities Exchange does not accept responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain "forward-looking information" ("
FLI
") within the meaning of applicable
Canadian securities laws. FLI in this release includes, without limitation, statements regarding
completion of the Offering; the proposed use of proceeds from the Offering; CSE approval of the
Offering; the Facility and the terms thereof; the Offtake Agreement and the terms thereof; and any other
activities, events or developments that the Company expects or anticipates will or may occur in the
future. Such FLI is identified by, among other things, words such as "plans", "expects", "is expected",
"aims", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "potential", "target",
"opportunity", "may", "could", "would", "might", "will" and similar terminology, as well as statements
regarding outcomes that "will", "should" or "would" occur. Such FLI should be considered carefully, and
the reader should not place undue reliance thereon. In addition, reference should also be made to the
risk factors listed in the Company's most recently filed management's discussion and analysis and
Annual Information Form dated April 24, 2026, all as filed under its SEDAR+ profile at
www.sedarplus.ca
for a description of additional risk factors. Readers are urged to carefully review those risk factors, which
are expressly incorporated by reference into this cautionary note. The Company does not undertake to
update any forward-looking information except as required by applicable securities laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/294117