American West raises $2.68m to accelerate Storm/Seal project activity
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Investors have backed American West’s strategy of progressing high-quality copper and zinc projects in North America by committing to a $2.68m capital raising.
Institutional, sophisticated and professional investors have committed to the placement of 21.45 million shares priced at 12.5c each, or its full placement capacity, to raise the funds.
The placement includes one free attaching option exercisable at 20c and expiring in two years for every two shares subscribed.
American West Metals (ASX:AW1) intends to use the funds for its West Desert project, where a JORC resource is poised to be issued in this half of the year; the Storm/Seal projects – including the continuation of resource drilling at Storm to determine JORC resources later this year; and inaugural drilling at the Copper Warrior project.
“We are very pleased to have received such strong support for the placement which will enable us to maintain our aggressive exploration approach across our project portfolio,” managing director Dave O’Neill said.
“Whilst drilling continues 24/7 at the Storm copper project, scoping study and resource estimation activities are also underway on the West Desert project. The results of these activities will provide strong news flow over the coming months.”
Besides the estimation of a maiden JORC resource, the company will also continue metallurgical testwork on both oxide and transitional ores at West Desert.
This will be carried out along with mining and development studies as well as environmental baseline surveys.
At Storm/Seal, American West will carry out exploration drilling to test high-priority electromagnetic targets that may represent further zones of massive copper sulphide, carry out beneficiation and initial mining studies for a potential direct shipping ore operation at Storm, and perform environmental studies.
Additionally, the inaugural drilling at Copper Warrior is aimed at testing recent induced polarisation geophysical and stratigraphic targets.
This article was developed in collaboration with American West Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.