Elmet Group Stock Surges 34% on Pentagon Tungsten Supply Deal

The company intends to deploy the funds to secure long-term access to raw materials and expand its domestic mining and processing footprint. Structure-wise, the deal begins with an immediate $200 million drawdown. In exchange, the Pentagon secures redeemable preferred equity and warrants equivalent to roughly 20% of Elmet's common stock, alongside the right to appoint an independent director and a non-voting board observer.

A significant portion of the capital—roughly $150 million—is earmarked for supply chain stabilization. Elmet plans to partner with Blue Moon Metals and EQ Resources Limited to establish a joint venture, which will oversee the operation of a new tungsten processing facility in Nevada. This move serves to insulate U.S. defense contractors from international supply volatility by localizing production capacity.