$3.4 Million Raised To Advance Copper And Zinc Projects

• 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

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 Shares will be placed pursuant to section 708 of the Corporations Act 2001 (Cth) and will rank pari passu with existing ordinary shares. The issue of the Listed Options is subject to receipt of shareholder approval, with the Company to call a General Meeting as soon as practicable.

Canaccord Genuity (Australia) Limited and RM Corporate Finance Pty Ltd acted as Joint Lead Managers to the Placement. Subject to receipt of shareholder approval, the Company will issue the Joint Lead Managers with 2,000,000 Listed Options as part of the fees payable to the Joint Lead Managers.

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
• PFS level mining and development studies
• Environmental baseline surveys

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

Copper Warrior Project:

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

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.

“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 @ 0.46% Cu), situated approximately 15km to the south-east of the project. Combined, these activities will provide strong news flow over the coming months.

“I welcome new shareholders and thank our existing shareholders for their continued endorsement of our growth strategy. We intend to deliver on our plans and look forward to the journey ahead."

Click here for the full ASX Release

This article includes content from American West Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.