CORRECTION FROM SOURCE: Allied Critical Metals Further Highlights Rapid Payback, Capital Efficiency and Infrastructure from Borralha PEA
CORRECTION FROM SOURCE: Allied Critical
Metals Further Highlights Rapid Payback,
Capital Efficiency and Infrastructure from
Borralha PEA
After-tax NPV(8%) of $473M (USD $346.6M) and 2.2-year
payback from start of production with IRR of 48.8% at USD
$1,000/mtu WO3
Key Highlights:
Additional Payback Metrics:
Payback
[1]
of approximately
2.2 years from commencement of
commercial production
corresponding to approximately
4.2 years from start of construction
under the
medium case of USD $1,000/mtu WO
₃
.
[2]
Capital Efficient Development:
Initial capital cost
[3]
at the Borralha Project of approximately
$125.0 million (USD $91.5 million)
, with a compact infrastructure layout designed to support
efficient underground mining and processing operations.
Strong Annual Cash Flow Generation:
Average annual revenue of approximately
$252.52
million (USD $184.89 million)
, average annual EBITDA of approximately
$142.18 million (USD
$104.10 million)
, and average annual free cash flow of approximately
$96.28 million (USD
$70.49 million)
over the initial mine plan at
USD $1,000/mtu WO
₃
.
[4]
Integrated Infrastructure Design:
Project infrastructure includes planned hydro electric power
connection, water supply and recycling systems, road access, and paste backfill integration to
support operations while minimizing environmental footprint.
Robust Core PEA Economics Maintained:
Previously announced after-tax NPV(8%)
[5]
of
$473.4 million
(
USD $346.6 million)
and IRR
[6]
of
48.8%
at
USD $1,000/mtu WO
₃
.
Significant Upside Leverage
: After-tax IRR of
78.4%
and NPV(8%) of
$963.8 million (USD
$706.4 million)
at USD $1,500/mtu WO
₃
.
Resource Growth Underway:
Fully funded
20,000-metre
drill program continues to target
resource expansion, confidence conversion and potential mine life extension beyond the initial
11-
year
production plan, targeting resource expansion
and confidence conversion.
All figures in North American decimal nomenclature.
All amounts in Canadian dollars unless stated otherwise.
4
Vancouver, British Columbia--(Newsfile Corp. - March 10, 2026) - Allied Critical Metals Inc. (CSE: ACM)
(OTCQB: ACMIF) (FSE: 0VJ0) ("Allied" or the "Company") is pleased to provide additional economic
and technical detail from the recently announced Preliminary Economic Assessment ("PEA") for its
100%-owned Borralha Tungsten Project (the "Borralha Project") in northern Portugal. The Borralha
Project's previously announced PEA economics remain unchanged.
This news release is an amending and restating news release clarifying and correcting the
immediately preceding news release dated March 9, 2026 to present figures consistently using
North American decimal nomenclature rather than European comma nomenclature. In
addition, Table 3 was updated to address rounding errors, translation errors and currency
conversion using $1.3658 CAD/USD and Table 5 was updated to clarify use of USD $M.
Roy Bonnell
, CEO & Director of Allied, commented:
"Following the release of our initial PEA for the
Borralha Project, we received strong investor interest in additional project-level detail. This
supplementary disclosure highlights the Project's capital efficiency, strong annual cash generation
and well-developed infrastructure platform. Importantly, the underlying economics of the PEA remain
unchanged, while the additional payback presentation provides another useful reference point for
investors evaluating project returns and the strong leverage the Borralha Project has to tungsten
prices."
This additional disclosure provides greater clarity on Borralha Project's capital efficiency, expected cash
flow generation and rapid capital recovery profile. The PEA outlines a capital-efficient underground
tungsten development project within the European Union, demonstrating strong economic returns across
a range of tungsten price assumptions and significant leverage to current market prices. The estimated
capital expenditures for the build out of the Borralha Project are the result of advanced project
infrastructure that a planned hydro-electric power connection, water supply and recycling systems, road
access, and paste backfill integration to support operations while minimizing environmental footprint.
The PEA continues to demonstrate a technically robust and capital-efficient underground tungsten
development project within the European Union. As previously announced, the PEA was evaluated under
three pricing frameworks:
the Base case of $962/mtu WO
₃
(USD $704/mtu WO
₃
)
,
$1,365/mtu WO
₃
(USD $1,000/mtu WO
₃
)
, and
$2,049/mtu WO
₃
(USD $1,500/mtu WO
₃
)
, while mine design and cut-off
grade selection were developed using a conservative tungsten price assumption of
$900/mtu WO
₃
(USD $659/mtu WO
₃
)
. The Company is providing the additional metrics below to facilitate investor
understanding of project capital intensity, cash flow generation and payback presentation. For additional
information, please see the news release dated March 2, 2026.
For additional reference, the Company is presenting payback under two different measurement bases.
The previously disclosed payback metrics were measured from the
start of construction (SC)
,
consistent with standard technical study practice. To facilitate comparison with industry benchmarks, the
Company is also providing indicative payback measured from the
commencement of commercial
production (CCP)
.
Table 1 — Economic Results (After-Tax)
Scenario
Price
1
NPV (8%)
2
IRR
3
Payback SC
4
Payback CCP
4
Medium
$1,365/mtu
(USD $1,000/mtu)
$473.4M
(USD $346.6M)
48.8%
2.2 years
4.2 years
Base
$962/mtu
(USD $704/mtu)
$182.7M
(USD $134.0M)
27.2%
3.8 years
5.8 years
High
$2,049/mtu
(USD $1,500/mtu)
$963.8M
(USD $706.4M)
78.4%
1.2 years
3.2 years
Notes:
1
.
Prices based on Argus Media Group price forecasts. Canadian dollar (CAD) equivalents calculated used a foreign exchange rate of CAD
$1.3658/USD.
2
.
NPV is a Non-GAAP measure; see notes below for additional information regarding NPV. M = million.
3
.
IRR is a Non-GAAP measure; see notes below for additional information regarding IRR.
4
.
Payback is a Non-GAAP measure. see notes below for additional information regarding payback.
Payback measured from the start of construction reflects recovery of initial capital over the full
development and operating timeline, while payback measured from the start of commercial production
excludes the construction phase and is presented for comparative reference only.
The results highlight significant sensitivity to tungsten price while maintaining positive economics under
conservative long-term assumptions.
In the Base Case scenario, tungsten (WO
₃
) represents approximately
96% of project NPV
, with minor
contributions from copper (~3%) and tin (<1%), based on NSR contribution. This highlights that the
Borralha Project economics are overwhelmingly driven by tungsten.
For reference, current reported tungsten market prices remain materially above the USD $1,000 per mtu
sensitivity case presented in the PEA, reaching approximately $2,998 per mtu (USD $2,195 per mtu) as
of March 6, 2026 (Source: Fastmarkets).
Mineral Resource Estimate
This initial PEA is based on the updated Mineral Resource Estimate ("MRE" or "2025 MRE") for the
Santa Helena Breccia at the Borralha Project, which were presented in accordance with National
Instrument 43-101 -
Standards of Disclosure for Mineral Projects
("NI 43-101") in the Company's current
technical report on Borralha (the "Technical Report") entitled "Technical Report on the Borralha Property,
Parish of Salto, District of Vila Real, Portugal", dated effective December 30, 2025, which is published
on the Company's website at
www.alliedcritical.com
and under its profile on SEDAR+ at
www.sedarplus.ca
.
Under the 2025 MRE, the Santa Helena Breccia has been tested by 41 drill holes and surface trenching
over approximately 400 meters of strike length and to depths exceeding 350 meters below surface.
Mineralization remains open along strike and at depth. The cut-off grade of 0.09% WO
3
was selected
based on reasonable prospects for eventual economic extraction under conceptual underground mining
and gravity-dominant processing assumptions, including a very conservative tungsten price of USD $
550/mtu WO
₃
and assumed recovery of approximately 80% (for MRE cut-off determination only).
Table 2 —2025 MRE for Borralha
(see also Technical Report for further details)
Clasification
Tonnes (Mt)*
Grade (% WO
3
)
Measured + Indicated
13.0
0.21
Inferred
7.7
0.18
*Mt denotes millions of tonnes (t).
Initial Capital Allocation and Operational Costs
The Borralha PEA estimates initial capital
[7]
of approximately
USD $91.5 million
, with sustaining
capital
[8]
of approximately
USD $87 million
and total life-of-mine capital
[9]
of approximately
USD $178
million
. The initial capital requirement reflects a compact project design integrating underground mine
development, process plant construction and site infrastructure.
Table 3 — Initial Capital Costs
Category
CAD$M*
USD $M*
Underground development
$52.93
$38.755
Processing plant
$26.54
$19.435
Paste backfill plant
$5.34
$3.910
Surface infrastructure
$6.13
$4.485
Power connection
$8.95
$6.555
EPCM / indirect costs**
$19.16
$14.03
Contingency
$5.97
$4.356
Initial Capital Costs
$125.0
$91.5
Tax incentives
$34.3
$25.1
*Canadian dollar (CAD) equivalents calculated used a foreign exchange rate of CAD $1.3658/USD.
M denotes million.
**EPCM = Engineering, Procurement, and Construction Management.
Certain development expenditures may also qualify for applicable Portuguese investment tax incentives,
which could partially offset initial capital expenditures.
Table 4 — Operating Cost
[10]
Breakdown
Cost Category
USD $/t Processed*
Mining
$41.2
Processing
$13.2
G&A
$5.0
Transport
$0.02
TC/RC**
$0.51
Total Operating Cost***
$59.3
*USD $/t denotes USD $/tonne.
**TC/RC = Treatment Changes and Refining Charges. These are fees paid by mining companies to smelters to process raw material concentrate
into refined metal.
***Operating costs for life-of-mine used for mine design average approximately
US$49/t
processed, based on the Sub-Level Long Hole Stoping
(SLOS) mining method. Limited areas may utilize Drift & Fill mining, which carries higher unit costs. In the economic model, operating costs are
expressed in
nominal US dollars and escalated annually for inflation
, resulting in an average life of mine operating cost of approximately
US$59/t
processed, including transportation and treatment/refining charges.
Concentrate Marketing Assumptions
The PEA assumes production of a marketable tungsten concentrate grading approximately
65% WO
₃
using a gravity-dominant flowsheet. Concentrate pricing assumptions are based on industry-standard
tungsten concentrate marketing structures, incorporating typical 80% payability terms and treatment
charges applicable to the tungsten market.
The Borralha Project benefits from relatively clean mineralogy dominated by
wolframite
, which generally
reduces impurity-related penalties relative to more complex tungsten concentrates.
Capital Efficiency
The relatively modest initial capital requirement reflects several favourable project characteristics,
including but not limited to:
compact underground mining footprint
gravity-dominant processing flowsheet
access to regional infrastructure including electrical grid power
limited earthworks due to site topography
moderate plant throughput of 1.4 million tonnes per annum (Mtpa) of mineralized material
potential Portuguese investment incentives
These factors contribute to a capital-efficient development scenario compared with many global tungsten
projects.
Simplified Annual Cash Flow Metrics
The initial Borralha Project mine plan is expected to generate strong annual cash flow
[11]
supported by
life-of-mine average production of approximately
1,708 tonnes WO
₃
per annum
, a nominal processing
rate of
1.4 Mtpa
, and an average mill feed grade of approximately
0.20% WO
₃
.
Table 5 — Cash-Flow
11
Table
Cash Flow Metric
Base Case
(USD $M)
USD $704/mtu
WO
₃
Medium Case
(USD $M)
USD $1,000/mtu
WO
₃
High Case
(USD $M)
USD $1,500/mtu
WO
₃
Average annual revenue
$131.75
$184.89
$274.69
Average annual EBITDA
$53.37
$104.10
$189.86
Average annual pre-tax operating cash flow
$40.41
$91.13
$176.89
Average annual free cash flow
$35.82
$70.49
$128.79
Life-of-mine revenue
$1,449.23
$2,033.75
$3,021.55
Life-of-mine free cash flow
$393.97
$775.43
$1,416.64
*All figures presented in USD $M, which denotes USD $ million.
Infrastructure and Site Requirements
The Borralha Project benefits from favourable site conditions and access to existing regional
infrastructure, supporting a capital-efficient development.
Surface infrastructure has been designed to concentrate industrial and administrative facilities within a
compact footprint, minimizing environmental disturbance while ensuring operational efficiency. The
process plant, paste backfill facility, workshops, administrative buildings and support infrastructure will
be located on a centralized platform adjacent to the orebody.
Access to the site will utilize existing regional roads connected to the municipal road CM1025-2.
Dedicated routes for light and heavy vehicles have been designed to ensure safe operations while
minimizing earthworks and environmental impact.
A comprehensive water management system has been designed to support mining and processing
operations. Water supply is expected to be sourced from local groundwater and surface water
resources, with water recycling integrated into the process flowsheet. Three retention basins will provide
operational water storage, sedimentation and environmental control.
Electrical power will be supplied through connection to the Portuguese national grid via a planned 60 kV
overhead line linking the Borralha substation to the SE Frades (REN) substation over approximately 6.5
km. The design complies with applicable national standards and incorporates environmental protection
measures.
The project infrastructure design integrates processing, backfill, water management and power supply
systems to support efficient underground mining operations while minimizing environmental impact.
Key Infrastructure Advantages
Grid power connection (60 kV line - 6.5 km)
Local groundwater and surface water available for operations
Existing regional road access to site
Compact site layout minimizing environmental footprint
Paste backfill and water recycling integrated into plant design
Ongoing Growth Strategy
The current initial PEA is based only on the
Santa Helena Breccia
deposit and an initial
11-year
production plan. The Company's fully funded
20,000-metre
drill program is underway and is targeting:
expansion of the current Mineral Resource;
conversion of Inferred Mineral Resources into higher-confidence categories;
potential extension of mine life beyond the initial plan; and
evaluation of throughput optimization and future project scale growth.
The Company intends to continue advancing Borralha through additional drilling, engineering
optimization, metallurgical refinement, geotechnical and hydrogeological studies, and progression
toward the next stage of technical study.
Qualified Persons
The scientific and technical information contained in this news release has been reviewed and approved
by the following Qualified Persons, as defined under NI 43-101:
J. Douglas Blanchflower, P.Geo.
Mr. Blanchflower is an independent Qualified Person under NI 43-101 and was retained by Allied Critical
Metals Inc. to prepare the NI 43-101 Technical Report dated effective December 30, 2025. He has
overall responsibility for the 2025 MRE and the Technical Report. Mr. Blanchflower is a Registered
Professional Geoscientist in good standing with the Association of Professional Engineers and
Geoscientists of British Columbia (No. 19086) and has more than five decades of experience in mineral
exploration, resource estimation, and technical reporting. Mr. Blanchflower has reviewed and approved
the scientific and technical information in this news release relating to the mineral resource estimate.
David Castro López, BSc, MIMMM, QMR
Mr. Castro López is a Mining Engineer and a Professional Member (MIMMM #685484) and Qualified for
Minerals Reporting (QMR) of the Institute of Materials, Minerals and Mining (IOM3). He is independent of
the Company and the Borralha Project. Mr. Castro López contributed to the metallurgical review and
process design considerations supporting the PEA and takes responsibility for the metallurgical and
mineral processing information contained herein. Mr. López has reviewed and approved the scientific
and technical information in this news release relating to the metallurgical and mineral processing
information contained herein.
Miguel Cabal, EurGeol, Licensed Geologist
Mr. Cabal is a licensed geologist with the European Federation of Geologists (EuroGeol #1439) with
over 28 years of experience in mineral exploration, resource evaluation and mine development. He is
Managing Director of Geomates (Spain) and has contributed to multiple NI 43-101 and JORC-compliant
technical reports, including PEA, PFS and feasibility studies. Mr. Cabal is independent of Allied Critical
Metals Inc. and the Borralha Project and has reviewed and approved the mining and economic
components of the PEA. Mr. Cabal has reviewed and approved the scientific and technical information
in this news release relating to the mining and economic components of this news release.
Vítor Arezes, BSc, MIMMM, QMR
Mr. Arezes is Vice President Exploration of Allied Critical Metals Inc. and a Qualified Person under NI
43-101. He is not independent of the Company due to his role as an officer. Mr. Arezes has extensive
experience in tungsten and polymetallic mineral systems and has conducted multiple site visits to the
Borralha Project, including during the 2025 drilling campaign. He contributed to geological interpretation,
exploration oversight, and technical review supporting the PEA. He is a member of the Institute of
Materials, Minerals and Mining (MIMMM #703197) and a Qualified Mineral Resources and Ore
Reserves Professional (QMR), and by reason of education, professional experience, and accreditation,
meets the definition of a Qualified Person as defined in NI 43-101. Mr. Arezes has reviewed and
approved all of the scientific and technical information in this news 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 Technical
Report dated December 30, 2025, 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 contains "forward-looking information" within the meaning of applicable Canadian
securities laws ("
FLI
"). FLI in this release includes, without limitation, statements regarding: (A) the PEA
results and economic indicators (e.g., NPV, IRR, payback and related sensitivities); (B) the conceptual
mine plan and operating framework (mining approach, processing rates, production profiles, cost
ranges and schedules); (C) the technical basis and process assumptions (cut-off approach, flowsheet
concept and anticipated concentrate specifications); (D) the status and trajectory of permitting and
approvals, infrastructure access and other site requirements; (E) market-related assumptions and the
Project's sensitivity and leverage to commodity pricing; (F) growth, conversion and expansion
opportunities, including planned drilling and other technical programs; (G) the anticipated sequence of
future studies, potential financing pathways and indicative timelines; and (H) the Project's strategic
positioning relative to regional and policy objectives. 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.
Material assumptions underlying the FLI include, but are not limited to: the accuracy of the 2025 MRE;
geological continuity; the PEA-level capital/operating cost estimates (with typical PEA accuracy ranges);
metallurgical recoveries and process performance consistent with test results to date; availability of
labour, equipment and consumables at quoted/priced levels; access to grid power and water on
contemplated terms; the ability to obtain land access, permits and approvals (including RECAPE) in a
timely manner; tungsten pricing consistent with Argus long-term forecasts or stated sensitivity cases;
foreign exchange and inflation consistent with study inputs; and availability of financing on acceptable
terms. The Company believes these assumptions are reasonable as of the date hereof, but no
assurance can be given that they will prove correct.
The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable them to
be categorized as Mineral Reserves. There is no certainty that the PEA results will be realized. Mineral
Resources are not Mineral Reserves and do not have demonstrated economic viability. Any reference to
potential production, mine life, NPV, IRR, payback, costs, recoveries, or other economic or technical
parameters is preliminary and conceptual.
Key risks and uncertainties that could cause actual results to differ materially from those expressed or
implied by the FLI include, but are not limited to: (i) exploration, geological, modelling and grade-
continuity risks, including the risk that further work does not confirm Inferred material or resource
extensions; (ii) risks that metallurgical performance, WO
₃
recoveries, concentrate quality or processing
costs differ from test work and assumptions; (iii) capital cost escalation, schedule delays, contractor
availability and supply-chain constraints; (iv) operating cost inflation (power, reagents, labour,
transportation); (v) commodity price and FX volatility (including sustained periods below the Argus long-
term or sensitivity prices assumed); (vi) permitting, environmental, social, community, land access and
regulatory risks in Portugal (including RECAPE outcomes and permit conditions); (vii) water, tailings and
geotechnical/hydrogeological risks inherent in underground operations; (viii) offtake, marketing and
market-access risks for tungsten concentrates; (ix) availability and cost of equity, debt or project finance
on acceptable terms; (x) changes in laws, regulations, taxes, royalties, or government policies; and (xi)
other risks described under "Business Risks" in the Company's most recent MD&A and in other
continuous disclosure filings available on SEDAR+. Readers are urged to carefully review those risk
factors, which are expressly incorporated by reference into this cautionary note.
Non-GAAP Financial Measures
The Company has included certain non-GAAP financial measures in this press release. These financial
measures are not defined under International Financial Reporting Standards ("
IFRS
") and should not be
considered in isolation. The Company believes that these financial measures, together with financial
measures determined in accordance with IFRS, provide investors with an improved ability to evaluate
the underlying performance of the Company. The inclusion of these financial measures is meant to
provide additional information and should not be used as a substitute for performance measures
prepared in accordance with IFRS. These financial measures are not necessarily standard and therefore
may not be comparable to other issuers.
Net Present Value (NPV) – is the present value calculation of net profit from operations determined
using a particular discount rate. All NPV values stated herein are on an after tax basis.
Internal Rate of Return (IRR) – is a financial metric used to assess an investment's profitability by
calculating the annual rate of return that makes the NPV of all cash flows (both positive and negative)
equal to zero.