Allied Critical Metals Inc. (ACM:CSE) is preparing for a public debut next week with a focus on two historical tungsten mining projects in Portugal. The company's assets — the Borralha Tungsten Project and the Vila Verde Tungsten-Tin Project — are located in northern Portugal, a region with a long-established mining history and strong infrastructure. Both projects are considered brownfield sites, meaning they have hosted previous mining operations and already contain substantial development groundwork.
The Borralha property spans approximately 3.8 square kilometers and historically produced more than 10,280 tonnes of wolframite concentrate between 1904 and 1986. Recent exploration work, including 13 drill holes totaling 1,918 meters at the Santa Helena Breccia (SHB), has returned grades ranging from 0.06% to 0.29% WO₃ (tungsten trioxide), with a recent assay confirming intercepts up to 188 meters at 0.29% WO₃. A preliminary inferred historical resource estimate suggests 18 million tonnes of mineralized material with a cut-off of 500 grams per tonne WO₃. Allied has targeted an updated mineral resource estimate and a pre-feasibility study in H2 2025.
The Vila Verde project, located 45 kilometers southeast of Borralha, has shown similar promise. Drilling at the Cumieira and Porqueira zones revealed mineralized systems of 2.1 by 1.0 kilometers and 1.0 by 0.5 kilometers, respectively. Historical resource estimates suggest 7.3 million tonnes of mineralized material, with grades at Cumieira including 1,347 gpt WO₃ and 264 gpt Sn (tin). Vila Verde has a signed offtake letter of intent with Global Tungsten & Powders, and the company is aiming to commence construction of the Pilot Plant in Q4 2025, using existing quarry infrastructure to potentially support early-stage production.
Metallurgical testing on both deposits has shown strong performance, with recoveries of up to 95%. The tungsten mineral present is primarily ferberite, a para-magnetic variant that supports more efficient and cost-effective separation processes. Permits currently in place allow for production of up to 150,000 tonnes per year, with potential expansion to 300,000 tonnes per year at Vila Verde.
In preparation for its public listing, Allied Critical Metals completed a brokered private placement of subscription receipts raising gross proceeds of CA$4.6 million. Units are priced at CA$0.20 each, consisting of one common share and a half warrant with a CA$0.25 strike price and a 24-month expiry from the listing date. The financing was led by Research Capital, with support from ECM Capital Advisors, Beacon Securities, and Ventum Financial. Prior to the completion of the latest financing, the company had raised approximately CA$3.6 million to date, with over CA$3.0 million invested in Borralha over the past 18 months.
The company operates within the critical metals sector, with an emphasis on tungsten — a material of increasing geopolitical interest. According to company statements, "China and Russia currently control approximately 90% of the global tungsten supply," and there are growing concerns that China may restrict tungsten exports to the United States amid ongoing trade tensions. The metal is considered vital to national defense due to its role in weapons manufacturing, which further enhances Allied's strategic relevance.
Strategic Shifts and Global Demand Elevate Tungsten's Role in Critical Materials
The tungsten sector experienced significant price and supply volatility in early 2024 as geopolitical tensions and export restrictions reshaped the global market. According to an April 16 report by Chem Analyst, "Tight supply in Germany and export controls in China in addition to geopolitical tensions have reshaped the global tungsten bar market." Chinese suppliers and smelters reportedly held back material from the market, which contributed to a 6% month-over-month increase in domestic prices. In Germany, tungsten bar prices rose 2.8% in the same period due to intensified competition for limited supply.
Chem Analyst also noted that China sharply increased tungsten bar exports to Russia despite Western sanctions, positioning itself as a key supplier for dual-use goods in defense applications. As a result, European buyers have begun seeking long-term offtake agreements to secure stable supply lines amid uncertainty. The report added, "Faced with uncertainty from China's tungsten bar export controls, downstream customers globally are increasingly seeking long-term offtake agreements."
A broader analysis by Mordor Intelligence indicated that the tungsten market was projected to grow at a compound annual growth rate (CAGR) of more than 8 % during the forecast period ending in 2030. The firm reported that the primary applications of tungsten include cemented carbides — extremely hard materials used in cutting tools, mining, and construction — as well as tungsten alloys used in aerospace and defense sectors. Mordor Intelligence also cited supply challenges and rising demand from end-use sectors as key market drivers. In 2022, the global production of contained tungsten reached an estimated 84,000 metric tons, with China accounting for approximately 85 % of that output.
The National Minerals Information Center provided additional insight into the diverse applications of tungsten, which include "cemented carbides… used by the metalworking, mining, and construction industries," as well as heavy metal alloys for high-temperature and high-density uses such as turbine blades, tool steels, and ammunition components. The center emphasized that tungsten's properties — such as its hardness and high melting point — make it vital for a wide range of industrial and military applications.
Market Research Future added that the global tungsten industry was valued at US$4.75 billion in 2023 and is expected to reach US$9.49 billion by 2032. The report identified growing usage in aerospace, automotive, and electronics as key drivers. "Tungsten produces carbides, which are frequently used in drill bits, cutting tools, and other high-strength and high-temperature applications," the firm noted. The Asia-Pacific region remained the dominant global market, led by China's expansive production and consumption footprint.
Path to Production: Key Catalysts Ahead
Allied Critical Metals has laid out a clear roadmap aimed at near-term cash flow and long-term scalability on their company website. Central to its upcoming milestones is the construction and commissioning of a pilot plant at Vila Verde, slated for Q4 2025. The company intends to use non-dilutive project financing to fund this build-out, and the signed LOI for an offtake agreement with Global Tungsten & Powders signals early commercial interest.
At Borralha, the company is working toward completing a prefeasibility study and updating its mineral resource estimate by mid-2025. These efforts are expected to feed into a definitive feasibility study, a step necessary for the granting of a full-scale mining license. Meanwhile, Allied anticipates further negotiations for offtake agreements in Q2 2025, adding to its commercial framework.
From a technical standpoint, both the Borralha and Vila Verde projects boast favorable mineralogy and infrastructure. The presence of ferberite, a form of tungsten with magnetic properties, facilitates cost-effective processing, while access to roads, hydroelectric power, water, and a skilled local workforce reduces development risk.
As the company moves closer to listing on the CSE and transitions from exploration to development, its focus on historically producing assets, strong metallurgical recoveries, and alignment with strategic resource needs positions it to benefit from broader geopolitical and industrial trends within the tungsten market.
Ownership and Share Structure
Following its planned reverse takeover and financing, Allied Critical Metals is expected to have approximately 109.8 million common shares issued and outstanding.
This total includes shares held by founders, converted debenture holders, participants in the concurrent financing, and shares from the Deeprock Minerals Inc. shell. On a fully diluted basis, which includes all outstanding warrants, the total share count would increase to about 123.2 million. The company also holds a CA$1.86 million promissory note, bearing 10 % annual interest and due on July 4, 2027 but payable only upon the availability of sufficient liquid proceeds.
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Important Disclosures:
- Allied Critical Metals Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Allied Critical Metals Inc.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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