American Tungsten Secures $7 Million in Significant Financing
American Tungsten Corp. Secures Significant Financing
American Tungsten Corp. (CSE:TUNG) (OTCQB:DEMRF) (FSE:RK9) is thrilled to announce the successful closing of its recent oversubscribed non-brokered private placement, raising an impressive total of C$7 million. This funding comes in as the company continues to enhance its foothold in the critical metals sector, showing strong demand from various institutional investors.
Details of the Financing
The successful offering involved the issuance of 14,000,000 common shares priced at C$0.50 each. This response from investors highlights growing confidence not only in American Tungsten's business strategy but also in its potential to thrive within the competitive landscape of the tungsten market.
Finder's Services and Compensation
In recognition of the finder's services related to this financing effort, American Tungsten compensated several arm's-length finders with cash fees totaling C$253,421.35 and issued 502,293 common share purchase warrants. These warrants allow the acquisition of shares at the same price of C$0.50 per share within a specified period.
Strategic Use of Proceeds
The company plans to utilize the net proceeds from this financing strategically. The focus will be on funding exploration work, acquiring mineral properties, and covering general working capital expenses. This investment is crucial in enhancing the operational capabilities of American Tungsten, particularly in advancing its flagship project, the Ima Mine in Idaho.
Leadership Changes to Boost Growth
As part of its ongoing growth strategy, American Tungsten announced the appointment of Dennis Logan as Chief Financial Officer. With over 25 years of experience in financial services and the resource sector, Logan has previously held pivotal roles in companies like Almonty Industries. His expertise is expected to guide the company through its forthcoming phases of growth and operational efficiency.
Company Vision and Future Plans
American Tungsten aims to bolster its operations at the Ima Mine Project, a historically significant underground tungsten property. This project signifies not just a potential for revenue but a focal point in addressing the critical issue of metal scarcity in North America. The company has recently expanded its land holdings and remains committed to achieving commercial production.
The Team Behind Success
Alongside Dennis Logan, CEO Ali Haji will also join the Board of Directors, bringing over 20 years of investment management and mining experience. Haji expressed gratitude for the overwhelming support from investors, emphasizing their commitment to accelerate the development of the Ima Mine towards actual production, which will significantly enhance shareholder value.
About American Tungsten Corp.
American Tungsten Corp. is devoted to exploring high-potential tungsten and magnetite assets across North America, particularly focusing on the Ima Mine Project. As a company poised for growth, American Tungsten is actively working to become a leader in the critical metals sector.
Frequently Asked Questions
What is the purpose of the $7 million financing?
The financing will fund exploration activities, option payments, mineral property acquisitions, and general working capital.
Who is the new Chief Financial Officer?
Dennis Logan has been appointed as the new CFO, bringing extensive experience in financial services within the resource sector.
Where is the Ima Mine located?
The Ima Mine Project is located in Idaho and is a key focus for American Tungsten as it looks to enter commercial production.
How many shares were issued in the financing?
The company issued a total of 14,000,000 common shares at a price of C$0.50 per share.
What does American Tungsten focus on?
American Tungsten is focused on exploring tungsten and magnetite assets in North America, particularly advancing the Ima Mine Project.
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