Investors have demonstrated their confidence in American West and its Storm Copper Project in Canada by backing its capital raising efforts to raise $7.8m.

The bulk of the funds will be raised through an offering of shares priced at 19.18c each – 20% premium to its closing price of 16c on 10 July 2023 – to raise $6.755m using the flow-through shares (FTS) provisions under Canadian tax law, which allow the initial purchaser to claim a tax deduction equal to the amount invested.

American West Metals (ASX:AW1) will raise the remaining $1.05m through an institutional placement of shares priced at 14c each.

Proceeds from the capital raising will enable the company to accelerate exploration and resource drilling at Storm’s near-surface deposits and implement an expanded diamond drill program to test very large geophysical targets that could unlock its full potential.

“American West is delighted with the high level of interest in this capital raising from quality investors in Australia and globally,” Managing Director Dave O’Neill said.

“The opportunity to raise funds at a significant premium to the current share price provides the company with additional working capital while minimising dilution to existing shareholders.”

The FTS Placement is facilitated by Canadian flow-through share dealer PearTree Securities.

 

Storm Copper Project

Located on Somerset Island in Nunavut, near the Seal base metals discovery, Storm hosts a distinct zonation of metal and mineralogy that appears as a large copper-rich core which gives way laterally and vertically to thinner peripheral zones of copper-iron, iron, zinc, and minor lead – a powerful vector for exploration.

These key features are like many of the world’s major sediment-hosted copper systems, including the deposits of the Kalahari Copper Belt and Central African Copper Belt.

Recent drilling returned a number of high-grade hits at the 4100N Zone such as 15.3m at 1.6% copper from 59.4m, with 7.6m at 2.9% copper from 64m and 3.1m at 4.8% copper from 64m at hole SR23-17.

Accelerating the ongoing additional extension and resource drilling will expand the mineralised footprint further.

That drilling will be carried out on geophysical targets is also intriguing as the largest such target is located beneath the 4100N Zone and is interpreted as the main conduit for the copper mineralisation coming to surface.

 

 

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.