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American West raises $3.4m to push copper-zinc exploration
Mining
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Investors have demonstrated their confidence in American West and its successful North American copper-zinc exploration by backing a $3.4m placement.
The company has received firm commitments from domestic and international institutional, sophisticated and professional investors for the placement of about 27.4 million shares priced at 12.5c each, which neatly meets its full placement capacity.
One free attaching option exercisable at 20c and expiring on 20 September 2024 will be issued for every two shares subscribed.
Proceeds from the placement will be used by American West Metals (ASX:AW1) to continue exploration at its Storm, West Desert and Copper Warrior projects and to complete the maiden JORC compliant Mineral Resource Estimation at West Desert before the end of this year.
Funds will also be used for Pre-Feasibility studies at West Desert and for further beneficiation and DSO studies at Storm.
“It’s fantastic to receive such strong support for the Placement, with interest well exceeding our modest placement capacity,” managing director Dave O’Neill said.
“The funding enables us to not only deliver a JORC compliant resource at West Desert, which we expect to announce very soon, but also continue exploration activities across our portfolio of high-quality copper and zinc projects.”
“We are looking forward to commencing the first drilling program at our Copper Warrior Project, and we hope to mirror the success of our neighbours in the Paradox Basin, such as the Lisbon Valley copper mine (which hosts 37Mt at 0.46% copper), situated approximately 15km to the south-east of the project.”
Use of funds
Besides defining the maiden resource at West Desert, proceeds will also be used to continue metallurgical test work on oxide and transitional ores, carry out PFS level mining and development studies, and carry out baseline environmental surveys.
At the Storm/Seal projects, American West will carry out follow-up resource definition drilling at the 2750N, 4100N and 2200N zones and exploration drilling targeting further discoveries of sedimentary copper mineralisation.
It will also carry out beneficiation and initial mining studies for a potential DSO operation at Storm while commencing environmental studies.
The company will also start maiden drilling at Copper Warrior to test recent IP 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.
