The world is running out of tungsten and that’s a much bigger problem than most people realize. This rare, ultra-durable metal is the hidden backbone of modern life. It’s found in everything from electric vehicles and semiconductors to missiles, armour-piercing ammunition, and AI hardware. But here’s the catch: almost 90% of global supply comes from China, Russia, and North Korea.

When China tightens its export rules or Russia flexes its geopolitical muscles, the ripple effects hit defence contractors, carmakers, and tech giants across the West. That’s why Western governments are racing to build independent supply chains before a shortage brings entire industries to a standstill.

This is where Allied Critical Metals (CSE: ACM | OTCQB: ACMIF) steps in.

With two past-producing projects in northern Portugal, the company is reviving Europe’s tungsten production right when the West needs it most.

Allied Critical Metals is building a foundation for near-term production and long-term growth in a NATO-friendly jurisdiction with modern infrastructure, skilled workers, and a clear permitting process.

At the heart of Allied’s strategy is the Borralha Project, a historic producer with a legacy that stretches back over a century. From 1904 to 1985, Borralha generated more than 10,000 tonnes of high-grade wolframite concentrate, cementing its status as one of Europe’s most important tungsten mines.

Today, Allied is breathing new life into this brownfield site through a comprehensive drill campaign that has already produced one of the highest-grade tungsten intercepts ever recorded in Western exploration: 12.0 metres grading 4.27% WO₃, including 6.0 metres at an extraordinary 8.39% WO₃

These results confirm a geologic model that could support significant expansion of Borralha’s resource base. Current estimates already show 4.98 million tonnes of Indicated Resources and 7.01 million tonnes of Inferred Resources, grading roughly 0.2% WO₃.

With permitting in place for bulk sampling and a full-scale mining license on the horizon, Borralha is poised to become Europe’s premier high-grade tungsten supplier.

Just 45 kilometres away lies Vila Verde, Allied’s second project and its pathway to early revenue. Vila Verde was once home to one of Portugal’s largest tungsten mines, and today, its extensive historical resources are being paired with modern infrastructure to create a pilot plant operation.

Construction of this facility is expected to begin in Q4 2025, with initial capacity set to process 150,000 tonnes per year, which is enough to produce 250 tonnes of WO₃ annually, with the option to double output as demand rises.

Importantly, Allied has already signed a Letter of Intent with Global Tungsten & Powders, a U.S.-based buyer, ensuring a direct commercial pathway for its concentrate. This means Vila Verde will be a cash-generating operation serving NATO-aligned markets at a time of record tungsten prices.

Together, Borralha and Vila Verde create a powerful one-two punch. Borralha brings the scale and grade needed to anchor Europe’s tungsten future, while Vila Verde delivers near-term cash flow and operational validation. And now, with a C$5.1 million oversubscribed private placement recently completed, Allied has the financial strength to accelerate exploration, advance permitting, and push both projects toward production. This fresh capital gives the company the runway to deliver on its promise of becoming a critical supplier of conflict-free tungsten to Western markets.

“With Vila Verde delivering near-term production and Borralha demonstrating exceptional scale and grade, Allied is positioned to become one of the most important secure, conflict-free sources of tungsten for Western industries, which is exactly what the US, NATO nations, and global manufacturers are looking for as they move away from Chinese-controlled resources”
— Dave Burwell, VP Corporate Development at Allied Critical Metals

Why Investors Are Paying Attention to Allied Critical Metals

The Perfect Timing

Western governments are moving aggressively to reduce their dependence on Chinese tungsten. In the U.S., the Defense Production Act has been activated to prioritize domestic production of critical minerals, with a ban on Chinese tungsten in U.S. military equipment by 2027.

Across Europe, the Critical Raw Materials Act is driving domestic sourcing and recycling, while NATO’s 2025 summit set a bold target: boost defense spending to 5% of GDP by 2035, with a large share directed toward secure mineral supply chains.

Allied Critical Metals’ projects in Portugal, a NATO member with a stable and mining-friendly jurisdiction, align perfectly with this strategy. By advancing its Borralha and Vila Verde projects now, Allied is positioning itself to be a key Western supplier at the exact moment when demand and government support are at their peak.

Tungsten Pricing on the Rise

The tungsten story isn’t just political, it’s financial. In 2025 tungsten prices have surged 40%, climbing to US$545 per metric ton unit (MTU). This rapid increase reflects tightening Chinese export controls, Russia’s geopolitical maneuvers, and skyrocketing demand across defence, EVs, AI chips, and semiconductors.

Historically, tungsten prices spike during times of war, technological disruption, or supply chain breakdowns. With today’s geopolitical tensions and the electrification boom, the market has entered a new inflection point. For Allied, every uptick in price magnifies project economics and shareholder value.

Momentum Meets Market Demand

While many governments are only beginning to invest in new supply chains, Allied is already advancing two past-producing projects with a head start in permitting and infrastructure. The company has signed a Letter of Intent with Global Tungsten & Powders, a U.S.-based buyer, creating a clear commercial pathway for its future production. Adding to this momentum, Allied recently raised C$5.1 million in an oversubscribed private placement, providing the capital needed to accelerate drilling, permitting, and development

This positions Allied alongside established Western tungsten players like Almonty Industries (TSX: AII), which is building what is expected to become the largest tungsten mine outside China. While Almonty represents the mature end of the sector, Allied offers investors early-stage growth potential, with Borralha’s exceptional grades and Vila Verde’s near-term production creating a unique one-two punch of scale and speed to market.

This gives investors a rare opportunity to capitalize on a critical mineral supply chain shift.

Company at a Glance

Stock Information CSE: ACM

Allied Critical Metals (CSE: ACM | OTCQB: ACMIF) is a Canadian-based mining company focused on reviving Europe’s tungsten supply through two 100%-owned past-producing projects in northern Portugal.

1. As of market close on Monday, September 8 2025
2. As of market open on Monday, June 9 2025 post CEM's Bermuda event

Investor Takeaway

Allied Critical Metals offers investors a front-row seat to one of the most urgent resource shifts of our time. As Western nations race to break free from China’s near-total control of the tungsten market, Allied stands out with two past-producing projects, near-term production potential, and the backing of a NATO-aligned jurisdiction.

With tungsten prices surging and governments committing billions to secure supplies, Allied is strategically positioned to deliver a reliable, conflict-free source of this essential metal.

For investors, this isn’t just a mining story. It’s a chance to participate in building the foundation of a new, secure supply chain for a critical resource that powers everything from AI chips to advanced weapons systems. As Allied hits key milestones in the months ahead, it has the potential to transform into a strategic supplier at the heart of the West’s economic and national security interests.

Next Stop on the CEM Circuit

Muskoka Capital Event
September 26–28, 2025
JW Marriott Rosseau Muskoka Resort
Minett, Ontario

This September, CEM returns to the iconic JW Marriott Rosseau for its 13th annual Muskoka Capital Event — a boutique summit that brings Canada’s most promising growth-stage companies face-to-face with top-tier capital market participants.

Focused on high-impact sectors including resource, technology, biotech, and special situations, the Muskoka edition delivers curated 1:1 meetings, exclusive networking opportunities, and the kind of deal-making environment only CEM can provide.

Get ready to meet the next wave of breakout performers!

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Warm Regards and Happy Investing,
Fabian Dawson