-- Allied Critical Metals (ACM.CN) is raising US$25 million through a private placement of shares along with US$15 million in project financing, the company said on Friday.
The private placement, with an existing investor and a new one, will consist of shares priced at $2.05. The current investor will back-stop the entire offering with the first tranche of US$10 million closing immediately, and the remaining US$15 million of the offering closing by July 17.
The current investor will also provide Allied with US$15 million for the Villa Verde pilot project, and has sealed an off-take agreement for 50% of the tungsten concentrates produced for a minimum US$1,000 per metric tonne unit (MTU) for 2026. Tungsten is currently above US$3,000/MTU, the company said. Allied Critical is targeting the fourth quarter of this year for first tungsten concentrate production from the plant.
Proceeds from the private placement will be used to develop the Borralha Tungsten Project in Portugal and develop the Villa Verde plant, a statement added.
"We are pleased to announce that we have entered into a transformative financing package that will not only fast-track our production of tungsten concentrates but also solidify our balance sheet. The Pilot Plant at Vila Verde is on track this year to bring online tungsten concentrates to a global market that is starved for the metal," said chief executive Roy Bonnell.
"Securing two strategic investors validates our strategy of fast-tracking tungsten concentrate production and enables us to be fully funded until the mine construction of the Borralha Tungsten Project, both of which are significant milestones for our company."
Allied Critical shares were last seen up $0.14, to $2.08, on the Canadian Securities Exchange.
Price: $2.09, Change: $+0.15, Percent Change: +7.73%