Global Tungsten Supply Takes Center Stage as New Projects Move Forward

The second tranche consisted of 10,317,073 common shares issued at CA$2.05 per share. The shares were issued in accordance with Canadian Securities Exchange policies and are subject to a hold period of four months and one day.

Allied said it intends to use the net proceeds for development of the Vila Verde pilot project, ongoing exploration and development activities at the Borralha Tungsten Project, and additional working capital.

"We are very pleased to welcome Tribeca as a strategic investor. Tribeca has extensive expertise in the metals and mining industry and has been a welcome partner to many mining companies looking to accelerate from exploration to production phase," Chief Executive Officer Roy Bonnell said. "The closing of the Second Tranche paves the way for us to continue to develop our flagship asset, the Borralha Property, as well as the near-term producing Vila Verde Property."

Ben Cleary, Portfolio Manager for the Tribeca Global Natural Resources Fund and Partner and Director of Tribeca, said the investment firm views Borralha and Vila Verde as highly strategic tungsten assets with the potential for near-term concentrate production.

"We are enthusiastic about supporting Allied as it brings these past-producing tungsten assets back into production," Cleary said. "As a shareholder, Tribeca will open its network across the mining and funding community to Allied as it advances the Borralha and Vila Verde Properties."

In connection with the second tranche, Allied paid Clarus Securities Inc. a cash commission equal to 5% of the gross proceeds raised and broker warrants equal to 5% of the shares issued. Each broker warrant can be exercised for one share at CA$2.05 for 24 months from issuance.

Allied is focused on its 100%-owned Borralha Tungsten Project and Vila Verde Tungsten Project in northern Portugal. The company describes Borralha as one of the largest undeveloped tungsten resources globally and said the project has received a favorable Environmental Impact Declaration.

Analyst Highlights Santa Helena Resource Conversion and Venise Exploration

Ventum Capital Markets analyst Surya Sankarasubramanian maintained a "Buy" rating and CA$2.95 price target on Allied Critical Metals in a September 18 research note, describing the latest drilling results from Santa Helena as "Modestly Positive." He said the drilling continued to encounter tungsten mineralization that was consistent with the existing Santa Helena resource model.

Among the results highlighted by Sankarasubramanian was hole Bo_19/26, which returned an estimated true width of 63.4 meters grading 0.16% WO₃. "It is positive that drilling continues to find high-grade internal zones and that the intercepted mineralization is consistent with the resource model," he wrote.

Sankarasubramanian pointed to resource conversion as an important objective of the current program. Inferred resources accounted for approximately 40% of the resource base used in the 2026 PEA, according to the analyst, and could not be incorporated as reserves in more advanced studies. "Resource conversion is necessary for more advanced studies," he wrote. "Infilling Santa Helena is essential."

Ventum Capital Markets analyst Surya Sankarasubramanian maintained a "Buy" rating and CA$2.95 price target on Allied Critical Metals.

Ventum characterized the work at Borralha as a "two-pronged approach." At Santa Helena, drilling remained focused on resource conversion, geotechnical work, and selective resource expansion. Exploration at Venise, meanwhile, was intended to advance the target toward a resource that could eventually be incorporated into a future economic study. At the time of the research note, assays remained pending for three completed holes, while another four holes were in progress.

The firm's CA$2.95 price target incorporated discounted cash flow analyses for both Borralha and Vila Verde. Ventum applied multiples of 0.80 times to its CA$2.62 Borralha project NAVPS estimate and 0.65 times to its CA$1.96 Vila Verde project NAVPS estimate. After accounting for residual-resource value and corporate-level adjustments, the firm calculated corporate NAVPS of CA$3.03.

Diamond Equity Research analyst Hunter Diamond reaffirmed a CA$3.50 per share valuation for Allied Critical Metals in a September 25 company-sponsored research update, compared with a CA$2.01 share price at the time of the report. The firm used a valuation methodology weighted 75% to discounted cash flow analysis and 25% to comparable company analysis.

Diamond highlighted continued drilling at the Santa Helena Breccia, where the latest results supported the continuity of tungsten mineralization within the existing resource envelope. The analyst said the broader 20,000-meter program was also producing technical data for resource conversion, mine planning, and future feasibility-level studies.

"We believe the significance of the current program extends beyond confirming mineralisation," Diamond wrote, adding that improved resource confidence and additional geotechnical, metallurgical and engineering data "should progressively reduce technical uncertainty as Borralha advances beyond the PEA stage."

The report also pointed to the Venise Breccia as a separate exploration opportunity outside Borralha's current Mineral Resource, mine plan, and PEA. Diamond assigned no value to Venise in its current valuation because of its early exploration stage, leaving any potential resource delineation outside the firm's base case.

Diamond's CA$3.50 valuation incorporated Borralha and Vila Verde through its DCF-based NAV methodology and comparable-company analysis. The firm said the latest Santa Helena drilling had not yet resulted in an adjustment to its base-case NAV because the results had not been incorporated into an updated Mineral Resource Estimate or economic study. It nevertheless reaffirmed its CA$3.50 per share valuation following the operational update, contingent on successful execution by the company.

Tungsten Supply Pressures Drive Global Efforts to Secure New Sources

According to an August 20 report from Argus Media, European tungsten prices had begun to retreat after a sharp increase, although prices remained substantially above year-earlier levels. The Argus duty-unpaid Rotterdam assessment for ammonium paratungstate (APT), an intermediate used in tungsten powder and carbide materials, had risen nearly 500% year over year following China's export controls. On August 11, the assessment fell by US$160 per metric tonne unit to US$2,780 to US$3,100 per mtu, marking its first decrease since April. European tungsten concentrate prices also declined to US$2,400 to US$2,600 per dry mtu on August 13. One European market participant told Argus, "A small decrease is something, but we cannot compete with China at these levels." 

The effects of constrained tungsten supply were also reflected in efforts to expand recycling capacity. Reuters reported on September 9 that an approximately US$52 million investment was planned to expand tungsten recycling capacity in Japan, supported by a government subsidy of about US$13 million. The expansion was expected to double annual ammonium paratungstate production capacity at the facility to 2,400 metric tons in tungsten trioxide equivalent, with equipment installation beginning in fiscal 2026 and operations scheduled to start in April 2029. The project also called for increased use of domestic tungsten scrap to replace approximately 1,200 tons per year of imported intermediate materials. Reuters described the investment as coming "as Japan seeks supplies of the critical mineral following China's export restrictions."

U.S. efforts to secure tungsten supplies were highlighted several days later. Reuters wrote on September 14 that the U.S. Defense Logistics Agency had awarded a contract worth approximately US$2 billion to supply tungsten ores, concentrates, and sodium tungstate as part of an effort to rebuild the National Defense Stockpile. The agreement included a guaranteed funded commitment of US$150 million.

Reuters reported that the award came as Washington sought alternative tungsten supplies amid efforts to reduce reliance on China and Russia, with the market facing "tightening global supply due to Chinese export restrictions and the absence of active U.S. tungsten mines." Deliveries to the stockpile were expected to wait until additional material became available through mining investments, offtake agreements, and expanded processing capacity to avoid disrupting supplies to existing U.S. manufacturers.

This shows the global push for tungsten.

Borralha Drilling and Vila Verde Production Plans Set the Next Milestones

At Borralha, Allied has a fully funded 20,000-meter drill program underway targeting resource expansion and potential extension of the project's initial 11-year mine plan. The company's Q3 2026 presentation said only about half of the Santa Helena Breccia zone has been drilled, with the breccia and broader property identified as priorities for upcoming work programs.

Borralha's current mineral resource estimate includes 13.0 million tonnes of measured and indicated resources grading 0.21% WO₃ and 7.7 million tonnes of inferred resources grading 0.18% WO₃. The company's 2025 drilling program completed 4,120 meters across 15 holes, including 12.0 meters grading 4.27% WO₃, with 6.0 meters grading 8.39% WO_3, as well as 18.0 meters grading 0.85% WO₃, including 4.0 meters grading 3.72% WO₃.

The Borralha project received its Environmental Impact Declaration in January 2026, enabling progression into detailed engineering and development. Allied said the project is advancing through Portugal's mine licensing pathway. Its permitting schedule shows the Project of Execution and RECAPE stage advancing, with construction and production targeted for approximately 2027.

At Vila Verde, Allied is pursuing a phased pilot-to-scale development strategy. The company is working to convert the mineral license from an exploration license to an experimental mining license. According to the presentation, this would allow up to 150,000 tonnes per year of mineralized material until a full-scale mining license is granted following completion of a feasibility study. Quarry permitting would initially allow 150,000 tonnes per year, with potential expansion to 300,000 tonnes per year.

The Vila Verde pilot plant is backed by binding US$15 million senior secured project financing carrying interest at SOFR plus 2.5% per year. Construction is scheduled to begin in 2026, with the first tungsten concentrate production targeted for the fourth quarter of 2026. The plant is designed to process 150,000 tonnes of mineralized material annually, with potential to increase capacity to 300,000 tonnes per year. 

Allied also has a binding offtake agreement covering 50% of Vila Verde pilot plant tungsten concentrate production for five years, subject to a 2026 floor price of US$1,000 per mtu. The agreement provides flexibility for purchases by the U.S. Department of War and Portuguese Ministry of Defence. The company has also signed a letter of intent with Pennsylvania-based Global Tungsten & Powders for tungsten concentrate sales and said discussions are ongoing with additional global refineries for the remaining production.

The company's milestone timeline also identifies that a 1,250-meter Vila Verde drilling program was launched in the third quarter of 2026, following the reassaying of historical drilling in the second quarter. The same timeline targets Vila Verde pilot plant operations for the fourth quarter of 2026, alongside the ongoing 20,000-meter Borralha drilling program.

Ownership and Share Structure¹

Following the September 28 financing, Allied Critical Metals has approximately 194.63 million shares outstanding, subject to the company's post-closing share-count disclosure. The company's 52-week range is CA$0.33-CA$2.48.

Institutions own 16% of shares, while Management and Insiders own 31%. The remaining 53% of shares are held by Retail.

Frequently Asked Questions

What is Allied Critical Metals Inc.?
Allied Critical Metals Inc. is a Canadian-based mining company focused on advancing and revitalizing the 100%-owned Borralha Tungsten Project and Vila Verde Tungsten Project in northern Portugal.

How much did Allied Critical Metals raise in its latest private placement closing?
Allied Critical Metals closed the second tranche of its previously announced US$25 million private placement, raising gross proceeds of US$15 million from strategic investor Tribeca Investment Partners.

What will Allied Critical Metals use the US$15 million financing for?
The company said net proceeds would be used to develop the Vila Verde pilot project, continue exploration and development at the Borralha Tungsten Project, and provide additional working capital.

What is Allied Critical Metals doing at the Borralha Tungsten Project?
The company had a fully funded 20,000-meter drill program underway at Borralha, targeting resource expansion and potential mine-life extension beyond the initial 11-year plan. Work at Santa Helena included resource conversion, geotechnical work, and selective resource expansion drilling.

When could the Vila Verde Tungsten Project begin producing tungsten concentrate?
The company's Q3 presentation targeted the first tungsten concentrate production from the Vila Verde pilot plant for Q4, with a design capacity of 150,000 tonnes of mineralized material per year and potential subsequent expansion to 300,000 tonnes per year.

Why is tungsten considered a critical mineral?
Tungsten was designated a critical raw material by both the United States and European Union because of its strategic importance to sectors including defense, aerospace, manufacturing, automotive, electronics, and energy.

What was happening to tungsten prices and global tungsten supply?
Argus Media reported in August that European tungsten prices remained substantially higher year over year following China's export controls, despite beginning to retreat from earlier levels. Reuters subsequently reported efforts in Japan and the United States to strengthen tungsten supplies through recycling, processing capacity, and strategic stockpiling.

How was the United States addressing tungsten supply security?
Reuters reported in September that the U.S. Defense Logistics Agency had awarded an approximately US$2 billion contract covering tungsten ores, concentrates, and sodium tungstate as part of efforts to rebuild the National Defense Stockpile.