American West Metals (WKN A3DE4Y / ASX AW1) has secured fresh capital of AUD 7 million to accelerate work on its 100% owned West Desert project in the US state of Utah. The placement was made at AUD 0.045 per share, representing an 18% premium to the 30-day VWAP. At Goldinvest.de, we already pointed out last week that West Desert could attract the interest of the markets now that JPMorgan wants to invest USD 1.5 billion in critical minerals and the US Department of Defense had previously announced its intention to purchase critical minerals such as indium for up to USD 1 billion! ( We reported.)
Alongside other institutional investors, Tribeca Investment Partners also participated with a strategic investment of AUD 2 million alone. The funds are to be used primarily for the further development of the critical metals indium and gallium; according to the company, West Desert is home to the largest and highest-grade indium resource in the US. American West Metals also points to existing drill permits and a political environment in the US that is increasingly supportive of critical minerals projects.
Financing of AUD 7 Million on Premium Terms
American West Metals’ capital measure was placed with institutional and professional investors. The issue price of AUD 0.045 per new share (“New Shares”) represents an 18% premium to the volume-weighted average price over the past 30 days. In addition, subject to shareholder approval, one free Series AW1O warrant is planned for every two shares subscribed.
In total, American West Metals plans to issue 72,132,994 new shares using the placement capacity under ASX Listing Rule 7.1 and a further 83,422,562 new shares under Listing Rule 7.1A. The company emphasizes that the pricing and strong demand from domestic and international investors underscore the interest in West Desert’s development progress. The company intends to use the proceeds to finance targeted work programs designed to consolidate or expand the position of indium, gallium, and other metals in the resource model.
West Desert: Indium Focus and Broad Metal Base
As mentioned, the fresh capital will be used for West Desert, a polymetallic project in the US state of Utah, one of North America’s most established mining regions according to the Fraser Institute ranking. The project already has a mineral resource estimate for zinc, copper, silver, and, in particular, indium that complies with the Australian JORC-2012 standard. The latter is used in semiconductors, solar modules, military electronics, smartphones, and other high-tech applications.
According to the company, West Desert is the largest undeveloped indium resource in the United States; gallium and molybdenum are not currently included in the JORC model, but are being addressed as potential additional resources! Furthermore, according to American West Metals, the mineralization system remains open along a corridor approximately 2.5 kilometers long; to date, only about 10% of the project area has been tested by drilling.
For the next work steps, American West Metals refers to existing permits for follow-up drilling. The priorities are zones with indium and gallium anomalies as well as expansions of the known zinc, silver and copper areas. At the same time, the team is working on the evaluation and definition of “walk-up” drilling targets, i.e. target points that can be tested without extensive additional preliminary work.
US Policy Creates Tailwind for Critical Raw Materials – American West Already in Talks
American West Metals’ focus on indium and gallium is particularly significant given the political situation in the US. According to the company, the government in Washington is keen to establish domestic supply chains for critical raw materials and reduce dependencies – especially as the US currently imports all of its indium and gallium. In March 2025, a presidential decree highlighted the accelerated development of projects for critical minerals. Under Title III of the Defense Production Act (DPA), funding instruments such as grants, low-interest loans, or price guarantees are therefore on the horizon. American West Metals says it is in talks with US authorities to assess the potential eligibility of the West Desert project for funding.
The management team led by Managing Director Dave O’Neill sees West Desert as a strategically located project in the middle of an established mining cluster in Utah. The combination of an existing JORC resource, potential indium and gallium upside, and secured drilling permits forms the basis for the next steps in growth. The fresh capital inflow – including the investment by Tribeca Investment Partners – gives the company the leeway to rapidly advance its targeted drill and study programs.
Next Steps
Today’s announcement contains several interesting pieces of information. First, the premium on the 30-day VWAP signals that subscribers attach considerable importance to the next operational milestones. Second, American West Metals is clearly focusing on critical metals in addition to the further development and exploration of the Storm copper project, with indium as the main focus, supplemented by zinc, silver, copper, and the gallium and molybdenum components currently under development.
The extent to which follow-up drilling can expand the known resource or define higher-grade zones is now in focus. It will also be relevant to see what specific support from the US authorities is actually available and applicable to West Desert. American West Metals will, of course, keep the public informed of progress on drilling programs, permits, and possible integration into US funding mechanisms. For now, the financing creates the conditions for resuming technical programs in Utah and reaffirming the importance of indium in the resource model.
