American Tungsten (CSE:TUNG) has completed a C$40 million ($41.27 million) bought deal private placement, which will be used to advance exploration and development at the IMA Mine in the US.
The offering was conducted by Stifel Canada, as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters including Integrity Capital and Canaccord Genuity.
As previously reported, each unit will comprise one Class A common share of American Tungsten and half of a common share purchase warrant. Each warrant will be exercisable to purchase one common share at C$3.75 within a 36-month period.
Earlier this month, American Tungsten began drilling at the historical lower tailings impoundment at IMA, which CEO Ali Haji says is a “key component” of the company’s strategy to define the project’s potential.
The company will drill over 30 acres of historical tailings found at the site from previous mining activities.
Historical operators have estimated lower tailings impoundment to contain 222,000 cubic yards of tailings.
The IMA Mine is located in Idaho, US and is a past-producing property with historical output.
Write to Aaliyah Rogan at Mining.com.au
Images: American Tungsten
