American Tungsten upsizes private placement to $20 million

American Tungsten Corp. (CSE: TUNG) (OTCQB: TUNGF) (FSE: RK9) announced it has increased its previously disclosed non-brokered Listed Issuer Financing Exemption private placement to $20 million from an undisclosed smaller amount.

The Vancouver-based company will issue up to 6,468,572 common shares at $3.50 per share under the offering. The shares will be issued pursuant to the listed issuer financing exemption under National Instrument 45-106 and will not be subject to a statutory hold period under Canadian securities laws.

American Tungsten may pay cash finders' fees up to 6% of gross proceeds raised from subscribers introduced by eligible finders. The company stated it is eligible under the LIFE exemption to raise gross proceeds of up to $22.6 million total.

The company plans to use net proceeds for its exploration program at the IMA Mine in Idaho, technical studies, and working capital. "The proceeds will accelerate our development timeline and support our transition toward production," said CEO Ali Haji in a statement.

American Tungsten is developing the Ima Mine Project, described as a historic underground tungsten property on private-patented land. The company holds an option to acquire full ownership subject to a 2% royalty and has expanded its position with 113 federal claims covering nearly 2,000 acres.

The offering requires approval from the Canadian Securities Exchange. An offering document will be available on SEDAR+ and the company's website, according to the company's statement.

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