$3.4 million raised by American West to advance copper and zinc projects

1 November 2022

Tuesday 1st November 2022

  • Firm commitments received from institutional, sophisticated and professional investors for the Company’s full placement capacity to raise $3.4 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
    • PFS studies at West Desert, and further beneficiation and DSO studies at Storm

American West Metals Limited (American West or the Company) (ASX: AW1) 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. In particular, the Company is pleased to introduce a number of new offshore institutions to the register.

Commitments to raise $3,424,458 (before costs) have been received for a placement of 27,395,663 new shares at $0.125 per share (New Shares) (Placement), representing the Company’s full ASX 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 20 September 2024 (Listed Options). The Listed Options will be the same as the existing AW1O class of securities. The Company has also accepted a Chairman’s List commitment of $300,000 under the same terms as the Placement, whereby the the issue of an additional 2,400,000 shares and 1,200,000 Listed Options will be subject to receipt of shareholder approval.

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

Storm/Seal Projects:

  • Follow-up resource definition drilling at the 2750N, 4100N and 2200N Zones
  • Exploration drilling targeting further discoveries of sedimentary copper mineralisation
  • Beneficiation and initial mining studies for a potential DSO operation at Storm
  • Commence environmental studies

Dave O’Neill, American West’s Managing Director said: “It’s fantastic to receive such strong support for the Placement, with interest well exceeding our modest placement capacity. 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. So far this year, the results from our exploration work have been exceptional, with drilling intercepts from the Storm Project being among the best results reported to ASX.

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