American Tungsten (CSE:TUNG) has completed the first tranche its non-brokered private placement to raise C$16.8 million ($18.5 million) to fund IMA Mine exploration in Idaho, US.
The company will issue just over 6.5 million shares at an issue price of C$2.58.
CEO Ali Haji says the closing of the first tranche reinforces support from institutional investors amid a challenged market.
“Given the logistics associated with the repricing, the company will be required to close a subsequent tranche,” Haji says.
As reported by Mining.com.au, the company decreased the issue price of shares to meet the changing market dynamics.
“The company will remain committed to value creation that ensures fiduciary responsibility is upheld across all verticals,” Haji adds.
“Securing this capital demonstrates strong investor confidence in our strategy to advance the high-grade IMA Mine Project.
“Funds will be immediately deployed to fast-track development activities, additional drilling, expediting technical studies and bolstering working capital.”
American Tungsten is a North American-based explorer focused on advancing its portfolio of tungsten and magnetite assets.
Write to Maddison Elliott at Mining.com.au
Images: American Tungsten
