American Tungsten (CSE:TUNG) is seeking to raise C$2.5 million ($2.79 million) in a non-brokered private placement to advance its flagship IMA Mine Project in Idaho, US.
The company will issue up to 5 million shares at a price of C$0.50 per share in conjunction with issuance of non-transferable warrants to finders and pay up to 7% of proceeds in fees, dependent on shares subscribed from finders introductions.
Warrants allow the holder to purchase one additional share at the same price for 24-months from the date of issue.
CEO Ali Haji deems this capital raise as an important step towards the progression of the company.
“It allows us to accelerate development of the IMA tungsten project and pursue additional strategic opportunities, positioning us to become a leading domestic source of this critical metal,” Haji says.
“As global demand for tungsten continues to rise, we are proud to advance a secure, North American supply chain that supports long-term growth.”
Tungsten is a critical mineral, often used in high-temperature applications for metal-working, mining, and petroleum industries.
In 2024, the global output of the mineral saw 81,000 tonnes produced, with a heavy influence from China at 67,000 tonnes, as recorded in the US Geological Survey.
American Tungsten is a Canadian explorer focused on the development of tungsten and magnetite projects in North America.
Write to Maddison Elliott at Mining.com.au
Images: American Tungsten
