Allied Critical Metals Company (ACM-CSE, Akmeev-OTCQB, 0VJ0-FSE) has announced details of a US$40 million strategic investment, including a non-brokered private placement offering of common shares that is expected to raise US$25 million.
The proceeds are earmarked for the Vila Verde pilot plant project in Portugal, where the first tungsten core is scheduled to produce in the fourth quarter of 2026, the company said.
In addition, the company said that an existing strategic investor has agreed to provide the company with $15 million in project financing for the Villa Verde project, and has entered into an offtake agreement with the company for 50% of the tungsten concentrate produced at the pilot plant. The acquisition agreement is subject to a floor price of US$1,000 per unit ton for calendar year 2026, subject to customary price revisions.
It said the non-brokered private placement offering will consist of ordinary shares issued at a price equal to the 10-day volume-weighted average trading price of the shares on the Canadian Securities Exchange (CSE) on the date of issuance, which is $2.05 per share.
The new strategic investor will invest US$15 million of the offering, subject to due diligence and other customary closing conditions, the company said. The existing strategic investor has agreed to support the entire offering with the first US$10 million tranche closing immediately, subject to stock exchange approval, with the remaining US$15 million of the offering closing on July 17, 2026.
Under an agreement dated April 24, 2026, the existing strategic investor has pledged to provide project financing facilities to the Company either in the form of a bond issue or as a high-term secured loan in the amount of US$15 million for a period of five years to finance construction and expenses at the pilot plant.
Allied shares advanced on the news, rising 5.7%, or 11 cents, to $2.05. Shares are currently trading in a 52-week range of $2.28 to 20 cents.
Under the acquisition agreement, Allied has pledged to sell 50% of the tungsten concentrate produced at the pilot plant to the existing strategic investor based on its existing license to produce 150,000 tons per annum of ore production for a period of five years.
If the license is increased by up to an additional 150,000 tons per year, the existing strategic investor will have the right to purchase 25% of the additional entitlement to the product on the same terms.
The Villa Verde Tungsten-Tin project is located 45 kilometers south of the company’s Borralha Tungsten project. It consists of a pre-existing quarry operation capable of near-term cash flow with construction and operation plans for this year. The quarry permit will allow 150,000 tons to be processed annually. The design capacity will allow production of 250 tons of W03 per year, according to the company, which can later be increased to 300,000 tons per year. The estimated capital expenditure for the pilot plant is $7.9 million (plus $2.9 million for subsequent expansions).
