Allied Critical $40M tungsten financing: project economics and offtake notes for mine planners
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Allied Critical Metals has secured US$40 million – a US$25 million equity placement at C$2.05 per share plus a US$15 million bond or senior loan – to fully fund a pilot tungsten plant at its Vila Verde project in Portugal, licensed for 150,000 tonnes per year of ore throughput over five years. The existing shareholder providing the loan will offtake 50% of pilot tungsten concentrates at a floor price of US$1,000/mtu, rising to 75% if plant capacity doubles. Funds will also advance the Borralha project, scoped for an 11‑year mine producing 1,708 tonnes of WO₃ annually.
Technical Brief
- Private placement shares priced at C$2.05, essentially matching Allied Critical Metals’ market open price.
- Financing structure combines equity with a US$15 million bond or senior loan from an existing shareholder.
- Same shareholder secures offtake rights tied to plant throughput expansion, aligning financing with production ramp-up.
- Vila Verde pilot construction and commissioning are both targeted within the current year, compressing schedule risk.
- Tungsten prices quoted above US$3,000/mtu, over five-fold higher than pre‑restriction levels per USGS data.
- Chinese tungsten exports reported down nearly 40% since new export controls, tightening non‑Chinese supply options.
- Borralha preliminary economic assessment outlines an 11‑year life producing 1,708 t/y WO₃, indicating commercial‑scale potential.
- Market capitalisation of about C$355.1 million implies substantial value being ascribed to pilot‑plus‑Borralha development pipeline.
Our Take
Allied Critical Metals’ Borralha project has already shown both a tripling of measured and indicated resources and >200 m of visible tungsten mineralisation in recent drilling, so this new financing effectively backs a resource base that has been de-risked in our coverage relative to many early-stage tungsten peers in Europe.
With Chinese tungsten exports reported down nearly 40% and prices up more than five-fold, locking in an offtake buyer for up to 75% of pilot-plant concentrates gives Allied Critical Metals unusual price and volume certainty at Borralha and Vila Verde compared with most critical-mineral juniors in our database, which typically market into spot or short-term contracts.
The combination of tungsten in Portugal and magnesium at Record Ridge in Canada positions Allied Critical Metals as a multi-commodity critical-minerals play, which aligns with how other names flagged in recent ‘space hardware’ coverage (e.g. Almonty Industries for tungsten, MP Materials for rare earths) are being framed as strategic suppliers for US and EU industrial policy.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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