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Allied Critical Metals is working to restart the historic Borralha tungsten mine in Portugal through a
low-capex, phased development strategy. The company is targeting early-stage production via a small pilot plant, followed by scale-up. Allied aims to fill a growing demand for non Chinese tungsten supply, especially as geopolitical dynamics shift. A prefeasibility study is due by year-end 2024, with initial production possible within 6-9 months of financing.
TL;DR
- 1. Allied Critical Metals is advancing a low-cost, phased restart of Portugal’s largest
historical tungsten mine, aiming for near-term production. - 2. CEO Roy Bonnell is not taking a salary, holds 9 million shares, and plans to continue
buying more. - 3. The project has no royalties or environmental liabilities and is fully permitted for a
150,000-ton pilot plant. - 4. The company expects to ship tungsten concentrate within 6-9 months of financing,
with a sub-one-year payback on the small-scale plant. - 5. A pre-feasibility study is scheduled for release by the end of 2024, with broader
development contingent on pilot success and expanding the resource.
Is Roy the right CEO for Allied Critical Metals?
Roy has led multiple junior mining ventures. He co-founded Thesis Gold and Founders Metals, both of which grew from $10 million market caps to hundreds of millions. Although Allied Critical is his first foray into critical metals, he plans to apply his previous success in value creation to this new context. Roy clarified that he is currently only active in this role, apart from board positions with a few inactive shells.
Did the CEO pay for his shares in Allied Critical?
Roy owns about 9 million shares, roughly a third of insider ownership. He acquired shares through a combination of founder shares (escrowed for two years), direct purchases in financings, and shares in lieu of salary. He stated, “I’m a big believer in this space of making your money with other shareholders.”
Will the CEO be taking a salary?
Roy is not currently drawing a salary.
He emphasized the importance of putting capital into the ground to create value for shareholders and himself. “When you’re starting off… the value is in putting money into the ground.”
Will the CEO be buying more shares?
Roy expressed his intent to continue participating in financings or buying in the open market.
“My expectation is that I’ll continue to participate along with other potential investors going forward,” he stated.
Does Allied Critical have the right technical team?
Allied’s technical team, led by COO and Portugal president João Barros, has worked on similar deposits in northern Portugal.
One geologist is pursuing a PhD focused on the metallurgy of Allied’s deposit. The team is familiar with both the mineralization and the specific deposit at Borralha.
Do insiders own a royalty on the project?
There are no insider-held royalties. “The company owns 100% of the project and there is no royalty,” Roy confirmed.
How is the board/executives compensated?
Currently, the board is unpaid, and there are no side arrangements for services like camps or helicopters. The technical team in Portugal is compensated.
Roy told Resource Talks that “… eventually we’ll normalize that,” once the company advances, but for now, costs are being kept lean.
Are there change-of-control fees?
There are no change-of-control provisions in place. Roy mentioned the company has not implemented any such fees or poison pills, either at the corporate or individual level.
What’s the history of Allied Critical Metals’ tungsten asset?
The Borralha mine operated from 1904 to 1986, producing over 10,000 tons of concentrate with an average grade of 66%.
It shut down due to falling tungsten prices and competition from cheap Chinese supply. Roy pointed out the strategic vulnerability of Western nations due to their dependence on foreign tungsten.
Are there skeletons in the closet?
Roy stated the asset is clean.
Tailings are inert and used locally for road aggregate. The planned and historic production uses only mechanical separation. Water testing has confirmed no contamination or legacy environmental issues.
Is there acid drainage in the rivers?
Water testing showed no acid drainage or other contamination in local rivers. The results have been submitted to the government, and no cleanup obligations exist.
Are the locals supportive of mining?
The company has strong local support, including from the local government. The area has a long mining history, and most families have connections to the mine. While a few Lisbon-based opponents show up to public consultations, local communities are broadly supportive.
What’s the business model for Allied Critical Metals?
Allied plans to move quickly into production, beginning with a small pilot plant (US$5-7.5 million capex), already permitted for 150,000 tons. The company has an LOI with Global Tungsten & Powders and plans to ship concentrate within a year of building the plant. Roy views the near-term cash flow as a way to de-risk a larger plant build.
Who is a potential suitor for this tungsten asset?
Potential acquirers include companies like Almonty (already producing in Portugal); Guardian, which is opening mines in the US; and smelters or strategic buyers in the West. Roy noted Chinese companies might also seek non-Chinese supply for their global clients, given recent export restrictions.
Is the grade high enough to make this asset work?
Roy acknowledged the grades (0.21-0.22% WO3) are modest, but the deposit hosts wolframite, which has higher recoveries and simpler separation than scheelite. Compared to similar projects in Portugal, Allied’s lower energy costs and mechanical processing offer competitive economics.
Are there other metals in the deposit?
There are secondary metals like copper and tin, but Roy said the project is profitable on tungsten alone. The company is even exploring sales of inert tailings as road aggregate to boost revenue.
When will they do metallurgical work?
Metallurgical work is ongoing. While some metals like tin will need to be removed due to smelter penalties, Roy expects the upcoming PFS (due October) to provide more detailed results.
When will the PFS come out?
The prefeasibility study is expected by the end of 2024. Roy stated, “It’ll cover drilling, met work, everything.”
What impurities would trigger penalties?
Smelter specifications vary, but impurities like tin, arsenic and cadmium can trigger penalties. Roy emphasized that their concentrate samples have consistently met the required thresholds. Roy listed, “But we’ve tested the concentrate and it meets the specs.”
What is the expected strip ratio?
Roy did not provide a specific strip ratio and deferred to the technical team for that detail. Roy said, “Our technical team will include that in the PFS.”
How long before they’re actually making money?
Assuming financing is secured, Roy estimated concentrate shipments could begin 6-9 months later, targeting 2026. “The payback is under a year” on the pilot plant, Roy said.
When will the EIA permitting have to be completed?
Permitting for the small plant is already in place. The full EIA for the larger facility is expected to be submitted and approved by Q2 2026.
Do they need additional exploration permits?
Exploration permits are in place. Roy said, “We’re drilling 5,000 meters now. We’re fully permitted.” The company is following a previous 4,000-meter campaign.
How much money do they have to spend before production?
Roy estimated they’ll need to spend over $10 million total before shipping concentrate. Roy estimated, “That includes everything, G&A, drilling, the plant.”
How much money do they have now?
As of the most recent financing, they raised $4.6 million. A significant portion is allocated to the ongoing 5,000-meter drill campaign and the PFS. Roy added, “That funds us through this drilling and into the PFS.”
Would they sell a royalty on the tungsten asset?
Roy said they are open to all financing options, including royalties, structured debt, and equity, but will choose based on what’s best for shareholders. Roy remarked, “I’d prefer structured debt, but if the royalty is well-structured, we’d consider it.”
What exploration work are they doing now?
A 5,000-meter drill program at Borralha is underway. The goal is to grow the resource to 20 million tons and support a 1 million ton per year facility.
What’s the goal of this drill program?
The main goal is to grow the resource, “Size and classification,” said Roy, though upgrading categories from inferred to indicated is also a secondary objective.
When will the drilling be done?
Drilling is expected to be completed by the end of July. “We avoid August because of fire season.”
Are forest fires an issue?
While August is a high fire-risk month, the company has not encountered problems. Roy noted that losing only one month to fire risk is manageable. “It’s not like Canada where snow shuts you down for months,” Roy said.
What’s the topography at the tungsten project?
The project is in hilly terrain, but roads and access are good. “It’s rolling hills. Easy road access. Very little tree-clearing,” Roy noted.
Is there enough skilled labor?
Yes, labor is readily available. The site is 30 minutes from Braga and an hour from Porto. “We’ve got trade schools, universities in Braga and Porto. Great labor pool,” Roy confirmed.
Is there power infrastructure?
Yes, the site is two kilometers from Portugal’s second-largest hydroelectric dam. “High-voltage lines run across the property,” said Roy. Only a short new line may be required.
What will the G&A cost be for Allied Critical Metals?
Roy didn’t give an exact figure but noted G&A is included in the $10 million estimated to reach concentrate production.
Is government funding available for tungsten development?
Allied is pursuing designation as a project of national interest in Portugal, which would expedite permitting and open up additional funding opportunities. “Governments move at a different pace than the private sector though,” Roy added.
What keeps the CEO up at night?
Roy is most concerned about delays beyond his control. “What keeps me up at night is… timelines,” he said, emphasizing that time equals money in mining. He worries that reliance on external parties, like governments or financiers, can jeopardize the “window of opportunity,” adding, “We never know when the window closes and we never know when it’s going to reopen again.” His focus is on keeping the project simple and manageable to avoid “trying to manage too many variables at once.”
What are they doing to market the Allied Critical story?
Roy acknowledged the challenge of marketing a less glamorous metal like tungsten, saying, “It’s not gold… as soon as you bring up tungsten… people ask, what do you use that for?” He sees this as an opportunity for education-based marketing. Their strategy has included attending conferences and now shifting toward digital outreach. Roy also emphasized growing interest due to geopolitical trends and scarcity: “Once you decide that you need tungsten in your portfolio, you don’t really have a choice of a lot of companies.” They’re targeting both European and North American investors, while also engaging with analysts and the tungsten supply chain: “We’re continuing to talk to potential analysts… and working with smelters and JV partners.” According to Roy, “The more we’re accepted by investors, the more credibility we have with industry, and vice versa.”
How much are they spending on marketing?
Allied Critical plans to spend approximately C$500,000 on marketing in its first year. Roy explained, “You spend so much more money… in terms of liftoff to get off the ground,” emphasizing that the goal is to build enough market recognition to support less dilutive financing. He added, “If you don’t have that following in the public market, then everything becomes much more expensive.”
When is the next news release?
Roy expects to release news “within the next couple of weeks,” hinting at developments that will “underscore some of the things we talked about today in terms of the importance of tungsten, not just in Europe but in North America.” He emphasized that the company is working on updates that should generate further interest and reinforce their strategic positioning.
Allied Critical Metals interview with CEO, Roy Bonnell
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