American Tungsten (CSE:TUNG) CEO Ali Haji says the company is preparing to transition towards production at the IMA Mine Project in Idaho, US, after upsizing a private placement to C$22.6 million ($24.71 million).
Yesterday (15 October), the Canadian explorer announced its intention to conduct a non-brokered private placement, via the issue of 2.86 million shares at C$3.50 per share.
The upsized offering will now consist of up to 6.46 million shares at the same issue price.
American Tungsten will use the funds towards an upcoming exploration program at the IMA Mine, as well as fast-tracking technical studies.
Haji says the upsized financing underscores the institutional appetite for exposure to critical metals and confirms the company’s role in strengthening the domestic supply chain.
“The proceeds will accelerate our development timeline and support our transition toward production, reinforcing our vision to become the leading US supplier of tungsten,” he says.
The IMA Mine is considered a legacy asset with historical tungsten production and optionality to explore for molybdenum. The mine began operations as a silver mine in 1881, with tungsten first discovered in 1903.
Tungsten is considered an important metal due to its hardness, density, and highest melting point of all metals. As such, the metal is critical for applications in defense, aerospace, industrial tools, and electronics.
American Tungsten is focused on building the US defence critical metals supply chain via its IMA Mine Project and the Star Project.
Write to Aaliyah Rogan at Mining.com.au
Images: American Tungsten
