American Tungsten, a leading tungsten exploration and development company, has announced an increase in the size of its private placement to $70 million. This decision was made in response to strong demand from investors.
The private placement, which was initially set at $50 million, will now consist of 140 million units priced at $0.50 per unit. Each unit will consist of one common share and one-half of one common share purchase warrant. The warrants will be exercisable at a price of $0.75 for a period of 24 months from the closing date of the private placement.
The proceeds from this private placement will be used for the continued exploration and development of American Tungsten’s projects, as well as for general corporate purposes.
“We are pleased with the increased interest and support from investors, which has allowed us to upsize our private placement,” said Mark Bradley, President and CEO of American Tungsten. “This additional funding will provide us with the necessary resources to advance our projects and create value for our shareholders.”
American Tungsten’s flagship project is the Mactung tungsten deposit, located in the Yukon Territory, Canada. The company also has a portfolio of other tungsten projects in Canada and the United States.
Tungsten is a critical metal used in a variety of industries, including aerospace, defense, and electronics. With the increasing demand for this metal, American Tungsten is well-positioned to capitalize on its projects and become a major player in the tungsten market.
The private placement is expected to close on or about May 28, 2021, subject to customary closing conditions and regulatory approvals. Canaccord Genuity Corp. is acting as the lead agent for the private placement.
This news is a positive development for American Tungsten and its investors, as it provides the company with the necessary funds to advance its projects and potentially increase its market share in the tungsten industry. Investors should keep an eye on American Tungsten as it continues to make progress in its exploration and development efforts.