American West raises $2.7 million to advance copper and zinc projects

1 August 2022

Monday 1st August 2022

Firm commitments received from institutional, sophisticated and professional investors for the Company’s full placement capacity to raise $2.7 million

  • Proceeds to be used to progress high-quality copper and zinc projects in North America including:
    • Continued exploration activities at the Company’s Storm, West Desert and Copper Warrior Projects
    • Completion of a JORC 2012 compliant Mineral Resource Estimation at West Desert during H2 2022
    • Metallurgical test work at West Desert, and further beneficiation and DSO studies at Storm

American West Metals Limited (“American West” or the “Company”) (ASX: AW1) is pleased  to  announce that it has completed a private placement to institutional, sophisticated and professional investors to raise new funds to advance its high-quality copper and zinc projects in  the  USA  and  Canada.

The Placement was strongly supported by domestic and international investors, reflecting the strong investor interest in the Company’s development and growth opportunities at its projects.

Commitments to raise $2,681,593 (before costs) have been received for a placement of 21,452,750 new shares at $0.125 per share (“Placement”), representing the Company’s full Listing Rule 7.1 placement capacity. Subscribers under the Placement will receive one free-attaching option for every two shares subscribed for and issued under the Placement, with the options having an exercise price of $0.20 and an expiry date of 2 years after their date of issue (“Options”).

New shares will be placed pursuant to Section 708 of the Corporations Act 2001. All of the shares to       be issued under the Placement will rank pari passu with existing ordinary shares. The issue of  the Options is subject  to receipt  of  shareholder  approval,  with the Company  to call  a  General  Meeting  as soon as practicable. Subject to compliance with, and meeting the requirements of, the ASX Listing Rules, the Company proposes to apply for quotation of the Options.

Canaccord Genuity (Australia) Limited and RM Corporate Finance Pty Ltd acted as Joint Lead Managers to the Placement.

New funds will be applied towards exploration and development activities at the Company’s Projects including:

West Desert Project:

  • Maiden JORC compliant Mineral Resource Estimation (MRE) to be issued in H2, 2022
  • Continuation of metallurgical test work on oxide and transitional ores
  • Mining and development studies
  • Environmental baseline surveys

Storm/Seal Projects:

  • Continuation of the resource definition drilling at  Storm  to  support  a  potential  JORC compliant MRE during H2, 2022
  • Exploration drilling to test high-priority electromagnetic targets that may represent  further zones of massive copper sulphide
  • Beneficiation and initial mining studies for a potential DSO operation at Storm
  • Environmental studies

Copper Warrior Project:

  • Inaugural drilling program to test recent IP geophysical and stratigraphic targets

Dave O’Neill, American West’s Managing Director said:

“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.

“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.

“I’d like to thank our existing shareholders for their strong ongoing support, and welcome any new shareholders aboard. We look forward to providing further updates on our activities in the coming weeks”