(TheNewswire)
Vancouver, British Columbia May 16, 2025 TheNewswire Allied Critical Metals Inc. (formerly Deeprock Minerals Inc.) (CSE: ACM) (OTCQB: 0VJ0) (the ‘ Company ‘ or the ‘ Resulting Issuer ‘) is pleased to provide a corporate update as to its updated uses of funds updating the disclosure in its Listing Statement dated April 23, 2025 (the ‘ Listing Statement ‘) which is publicly available under the Company’s profile on SEDAR+ at www.sedarplus.ca, to better reflect the actual results of concurrent financing (‘ Concurrent Financing ‘) of approximately $4.6 million announced by the Company on March 25, 2025 and corresponding updated uses of funds.
The following provides an outline of the Company’s principal purposes of funds, which updates the disclosure in the Listing Statement.
Principal Purposes of Funds
The Company intends to use the funds available to it upon completion of the Company’s transactions (the ‘Transactions ‘) for listing (the ‘Listing’) on the Canadian Securities Exchange (the ‘CSE’) to further its business objectives. Specifically, the Company intends to use the funds available to it following compl etion of the Transactions over the next 12 months as follows:
Use of Proceeds
Estimated Amount
($2.5 million minimum Concurrent Financing)
Estimated Amount
($5.0 million maximum Concurrent Financing)
Resulting Amount
(actual $4.6 million Concurrent Financing)
Variation from maximum $5.0 million Concurrent Financing
Exploration [1]
Borralha – Phase 1
$492,600
$492,600
$492,600
$0
Borralha – Phase 2 [2]
–
$1,503,200
$1,503,200
$0
Vila Verde – Phase 1 [3]
–
$226,000
–
($226,000)
Vila Verde – Phase 2 [4]
–
$1,066,835
–
($1,066,835)
Prepayment on 2027 Note [5]
$100,000
$100,000
$100,000
$0
12 months general and administrative costs [6]
$182,000
$182,000
$180,000
($2,000)
Estimated transaction costs [7]
$250,000
$250,000
$250,000
$0
Investor Relation Services [8]
–
–
$885,500
$885,500
Additional working capital [9]
$496,035
–
$231,866
$231,866
Totals:
$1,520,635
$3,820,635
$3,574,811
($245,824)
Notes:
The Exploration is comprised of the recommended work programs for the Borralha Tungsten Project and the Vila Verde Tungsten Project, which are summarized in the Listing Statement. For more detail, please see the Borralha Technical Report and the Vila Verde Technical Report.
Phase 2 of the recommended work program for Borralha was estimated at $1,503,200.
The Company prioritises exploration of Borralha over Vila Verde, but once exploration of Borralha is addressed and if there are sufficient remaining funds then such funds may be allocated towards exploration at Vila Verde, which totals $226,000 for Phase 1 and $1,066,835 for Phase 2. As a portion of drilling expenses are expected to be settled in common shares, the Company expects that there will be sufficient available funds to begin exploration at Vila Verde.
The total cost for Vila Verde’s Phase 2 work program is $2,279,000, but if drilling expenses are partly settled in common shares there may be sufficient funds available to commence Phase 2 of the Vila Verde work program following completion of Phase 1.
On Closing, ACM must pay $100,000 to Pan Iberia as a prepayment of the 2027 Note. The funds available is already net of payment of short term promissory notes, which are paid on Listing and are related to repayment of mineral property license fees and acquisition of the 1% NSR.
The 12 months general and administrative costs are expected to include $35,000 for audit and accounting expenses, $15,000 for regulatory, $45,000 for legal fees, $61,645 for investor conferences marketing fees and expenses, and $23,355 contingency for other general and administrative matters. The budget for management fees ($72,000) was reallocated to Borralha exploration as they pertain to license regulatory expenditure and other work in Portugal in respect of Borralha and the $60,000 budget for legal fees was adjusted to $45,000.
The Transaction costs includes $170,000 legal expenses, $20,000 for the subscription receipt and warrant agent and CDS, $40,000 for CSE listing fees, and $20,000 filing fees and contingency.
Since completion of the Listing, the Company has reallocated $885,500 fixed fees for investor relations services, as described in the Company’s news release dated May 2, 2025. A further amount of up to $15,560 per month variable cost of investor relations was allocated as additional working capital as such services will be terminated to limit costs within budgeted amounts. A discussion of the rationale for the allocation to investor relations services is provided below.
Additional working capital will be deployed towards exploration of Borralha, then Vila Verde, and as working capital for expenses, which may include variable monthly expenses of up to $72,000 for market making ($6,000 per month) and other such expenses for investor relations services.
Prioritizing Borralha Exploration – Rationale for Changes to Uses of Proceeds
As previously disclosed in the Listing Statement (Section 3.3—Resulting Issuer), the Company is prioritizing exploration of Borralha as such exploration enables completion of a preliminary economic assessment( PEA) or prefeasibility study( PFS) for Borralha by the end of summer 2025. In particular, the above use of funds will enable the Company to complete Phase 1 and Phase 2 exploration of Borralha by the end of August 2025. Drilling is expected to commence at Borralha as soon as May 22, 2025.
Borralha is a brownfield past-producing advanced stage, near term production tungsten project which requires a proportionate approach to investor relations to adequately position the Company for the next stage of development. Accordingly, total funds of $885,500 (less than one fifth of the Concurrent Financing) were allocated for investor relations services to sufficiently position the Company’s profile for more significant capital raising following completion of the PEA/PFS this summer to prepare for eventual project financing. Funds allocated to investor relations are aimed at direct interactions with potential capital providers and market participants in the critical metals and tungsten markets to fast track the development and construction the Borralha as a key western source of global tungsten production, highlighting the Company’s profile as particularly well-placed to become a significant leader in global tungsten mineral exploration and development in Portugal. While global macro-economic and political factors are creating an excellent positive environment for the Company with tungsten prices rising 25% from $320/MTU (metric tonne unit) to $400/MTU over the past five months [Source: Fastmarkets, May 2025], tungsten remains a lesser known niche critical mineral in the capital markets community. Accordingly, the Company in consultation with its financial advisors, have developed a strategy to accelerate increased profile recognition in the lead up to completion of its PEA/PFS in the coming months. The Company is excited to begin the next chapter of development of its Borralha and Vila Verde Tungsten Projects and look forward to providing updates as drilling and further exploration progresses over the coming weeks and months.
The Company intends to spend the funds available to it on completion of the principal purposes described above. Nevertheless, there may also be circumstances where, for sound business reasons, a reallocation of funds may be necessary for the Company to achieve its short term and long term objectives. The Company may require additional funds in order to fulfill all of the Company’s objectives, in which case the Company expects to either issue additional shares or incur indebtedness. It is anticipated that the available funds will be sufficient to satisfy the Company’s objectives over the next twelve months.
New CFO
In addition, the Company is pleased to announce Sean Choi as its new Chief Financial Officer who replaces Keith Margetson who has stepped down effective May 14, 2025. The Company greatly appreciates all of Keith’s efforts in completing the Transactions as Chief Financial Officer for the Company since April 2023, and Keith will remain a consultant to the Company to provide assistance as necessary going forward.
Mr. Choi has over 19 years of experience in public accounting and mining industry. During his career, he has served as Chief Financial Officer of Ecuador Gold and Copper Corp. and Northern Sun Mining Corp. which were both reporting issuers listed on the TSX Venture Exchange. He also served as Chief Financial Officer of York Harbour Metals (TSXV: YORK) from April 2014 to June 2024. Sean is a Chartered Professional Accountant and Chartered Accountant (Ontario) and holds a Bachelor of Administrative and Commercial Studies degree from the University of Western Ontario.
The Company also hereby announces the grant of 3,500,000 stock options (the ‘ Options ‘) at an exercise price of $0.22 per share granted to directors, officers, employees and consultants of the Company pursuant to its omnibus equity incentive plan, which vests immediately and expire 5 years after the date of grant. The Company also announces that it has granted 4,097,760 restricted share units (‘ RSUs ‘) to directors, officers, employees and consultants of the Company pursuant to its omnibus equity incentive plan, which vests on September 16, 2025.
The Options and RSUs will be subject to a four month hold period in accordance with applicable Canadian securities laws and the policies of the Canadian Securities Exchange.
ABOUT Allied Critical Metals INC.
The Company is is a Canadian-based mining company focused on the expansion and revitalization of its 100% owned past producing Borralha Tungsten Project and the Vila Verde Tungsten Project in northern Portugal. Tungsten has been designated a critical metal by the United States and other western countries, as they are aggressively seeking friendly sources of this unique metal. Currently, China and Russia represent approximately 90% of the total global supply and reserves. The Tungsten market is estimated to be valued at approximately $5 – $6 billion USD and it is used in a variety of industries such as defense, automotive, manufacturing, electronics, and energy.
Please also visit our website at www.alliedcritical.com.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains ‘forward-looking statements’, including with respect to the use of proceeds. Wherever possible, words such as ‘may’, ‘would’, ‘could’, ‘should’, ‘will’, ‘anticipate’, ‘believe’, ‘plan’, ‘expect’, ‘intend’, ‘estimate’, ‘potential for’ and similar expressions have been used to identify these forward-looking statements. These forward-looking statements reflect the current expectations of the Company’s management for future growth, results of operations, performance and business prospects and opportunities and involve significant known and unknown risks, uncertainties and assumptions, including, without limitation, those listed in the Company’s Listing Statement and other filings made by the Company with the Canadian securities regulatory authorities (which may be viewed under the Company’s profile at www.sedarplus.ca ). Examples of forward-looking statements in this news release include, but are not limited to, statements regarding the proposed timeline and terms of the investor awareness campaign, anticipated benefits to Company from running the investor awareness campaign, and the performance of the investor relations services providers of the marketing services as contemplated in the marketing agreements, or at all. Should one or more of these risks or uncertainties materialize or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this news release. These factors should be considered carefully, and prospective investors should not place undue reliance on the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements and reference should also be made to the Company’s Listing Statement dated April 23, 2025 , and the documents incorporated by reference therein, filed under its SEDAR+ profile at www.sedarplus.ca for a description of additional risk factors. The Company disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise, except as required by law.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this press release and has neither approved now disapproved the contents of this press release.
ON BEHALF OF THE COMPANY
‘Roy Bonnell’
Chief Executive Officer and Director
For further information, contact:
Dave Burwell
VP Corporate Development
¿¿ daveb@alliedcritical.com
¿¿ 403-410-7907
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