American Tungsten Expands Non-Brokered Offering to $2.5M
American Tungsten Expands Non-Brokered Offering to $2.5M
American Tungsten Corp. (CSE:TUNG) (OTCQB: DEMRF) (FSE: RK9) is thrilled to share exciting news regarding its private placement initiative. The company has effectively responded to a surge in market interest, resulting in a significant upsize of its earlier announced non-brokered private offering. Originally projected at $2,000,000, the offering has now been enhanced to a remarkable $2,500,000. This expanded offering, known as the LIFE Offering, is set to provide up to 1,562,500 common shares priced at $1.60 each.
Details of the LIFE Offering
This LIFE Offering is conducted under the Listed Issuer Financing Exemption, adhering to the strict guidelines outlined in National Instrument 45-106 - Prospectus Exemptions ("NI 45-106"). One notable feature of this offering is that it allows residents from all Canadian provinces to participate—a significant advantage for investors. Moreover, the securities associated with this exemption will not require a hold period according to Canadian securities regulations, facilitating immediate accessibility for interested parties.
Investment Strategy and Usage of Proceeds
With a clear vision for growth, American Tungsten plans to deploy the net proceeds from the LIFE Offering strategically. This includes funds earmarked for property payments, exploration activities, marketing efforts, and general working capital. This multi-faceted approach aims to enhance the company’s operational capabilities while steering it toward future success.
Closing Conditions and Finder's Fees
The closing of the LIFE Offering may occur in one or multiple tranches, contingent upon receiving essential approvals, including those from the Canadian Securities Exchange (CSE). Additionally, the Company must secure a minimum gross of $2,000,000 to complete this offering. To attract investment, American Tungsten is also offering finders’ fees of up to 7.0% of the gross proceeds for shares sold directly to investors introduced through eligible finders. This initiative could lead to the issuance of non-transferable finders’ warrants, further incentivizing broker participation.
Regulatory Considerations
It is critical to note that the securities being issued through the LIFE Offering have not been registered under the United States Securities Act of 1933. As such, there will be no offerings or sales within the United States or to any U.S. persons without proper registration or an exemption. American Tungsten is committed to following all regulatory requirements diligently as it navigates this investment landscape.
About American Tungsten Corp.
Previously known as Demesne Resources Inc., American Tungsten Corp. is a Canadian-based company specializing in the acquisition and exploration of mineral properties. The Company’s flagship project, the Star Project, is located in the Skeena Mining Division and encompasses approximately 4,615.75 hectares of promising mineral titles. In addition to this, American Tungsten has a significant agreement in place to acquire a 100% interest in the IMA Mine Project, notable for its historical production of tungsten located in Idaho, USA. The IMA Mine Project further underscores the company’s diversified portfolio aimed at positioning itself as a leader in the mineral resources sector.
Engagement and Communication
American Tungsten is also focused on building a robust presence on social media platforms, engaging with investors and stakeholders alike. You can find them active on LinkedIn, X (formerly Twitter), Facebook, Instagram, and YouTube, broadening their communication reach and fostering community interaction.
Frequently Asked Questions
What is the purpose of the LIFE Offering?
The LIFE Offering aims to raise funds for property payments, exploration activities, marketing efforts, and general working capital.
How much has the LIFE Offering increased?
The LIFE Offering was increased from $2,000,000 to $2,500,000 in response to strong market demand.
What does the approval from the Canadian Securities Exchange (CSE) involve?
The CSE’s approval is required for the completion of the LIFE Offering, ensuring compliance with regulatory standards.
What is the significance of the Listed Issuer Financing Exemption?
This exemption allows the company to offer securities without a hold period, making it more attractive for investors across Canada.
Where can I find more information about American Tungsten Corp.?
For further details, you can visit the company’s official profile on SEDAR and their website, or follow them on their social media channels.
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