{australien_flagge}Less than three weeks after closing its oversubscribed A$3 million placement (at A$0.095), Australian copper explorer American West Metals Ltd (ASX: AW1; FRA: R84) is raising a further A$7.8 million from the capital markets on again greatly improved terms.
The fact that American West is able to raise a total of more than A$10 million in fresh capital at steadily improving terms in a poor market environment in quick succession speaks to the exceptional quality of the Storm copper discovery. Storm is beginning to emerge as a significant copper deposit. It is no coincidence that the list of the top 20 shareholders has recently been joined by prominent names from the mining industry. These very days, arguably the most exciting phase of exploration at Storm is beginning: the company is testing the large geophysical targets recently identified below the near-surface copper deposits. With drilling success, the Storm project could finally join the exclusive group of world-class copper deposits.
{australien_flagge}Less than three weeks after closing its oversubscribed A$3 million placement (at A$0.095), Australian copper explorer American West Metals Ltd (ASX: AW1; FRA: R84) is raising a further A$7.8 million from the capital markets on again greatly improved terms.
The company is taking advantage of the fact that the Storm copper project is located in Canada, which allows certain investors to obtain tax-advantaged flow-through financing. In this specific case, American West is placing shares at a price of A$0.1918, which represents a 20% premium to American West’s closing price of A$0.16 per share on July 10, 2023. In this way, the company will receive A$6.755 million. At the same time, American West is placing a further A$1.05 million at A$0.14 with institutional investors. This price represents a 12.5% discount to the July 10, 2023 closing price of A$0.16 per share and a 15.2% discount to the 10-day VWAP of A$0.165 per share.
Dave O’Neill, Managing Director of American West, said, “We are pleased with the strong interest in this capital raising from quality investors from Australia and around the world. The ability to raise funds at a significant premium to the current share price provides the company with additional working capital while minimizing dilution for existing shareholders.”
CONCLUSION: The fact that American West is able to raise a total of more than A$10 million in fresh capital at steadily improving terms in a poor market environment in quick succession speaks to the exceptional quality of the Storm copper discovery. Storm is beginning to emerge as a significant copper deposit. It is no coincidence that the list of the top 20 shareholders has recently been joined by prominent names from the mining industry. These very days, arguably the most exciting phase of exploration at Storm is beginning: the company is testing the large geophysical targets recently identified below the near-surface copper deposits. With drilling success, the Storm project could finally join the exclusive group of world-class copper deposits.
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