PERTH (miningweekly.com) – Junior American West Metals will raise A$7.8-million in order to accelerate exploration at its Storm copper project, in Canada.
The ASX-listed company will raise an initial A$6.75-million through the flow-through share provisions under the Canadian tax laws, with the shares to be placed at a price of 19.18c each, representing a 20% premium to American West’s last trading price on July 10.
The company would also undertake an institutional share placement to raise an additional A$1.05-million under its existing placement capacity.
The share placement will be priced at 14c each, representing a 12.5% discount to the company’s last closing price and a 15.2% discount to its ten-day volume weighted average share price.
“American West is delighted with the high level of interest in this capital raising from quality investors in Australia and globally,” said MD Dave O’Neill.
“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.
“This funding will allow the company to further ramp up exploration and resource drilling activities at the near-surface deposits at Storm, already shaping up as a very significant copper deposit, and to implement an expanded diamond drill programme to test the large geophysical targets that could unlock the full potential at Storm.” 