American West Metals Ltd (ASX: AW1) has received firm commitments to raise A$7.8M via a combination of a flow-through shares placement under the Income Tax Act (FTS placement), and a placement of ordinary fully paid shares to investors.
Dave O’Neill, American West managing director, said “American West is delighted with the high level of interest in this capital raising from quality investors in Australia and globally. The opportunity to raise funds at a significant premium to the current share price provides the company with additional working capital while minimizing dilution to existing shareholders.”
Under the FTS placement, the company will raise C$6M through the issue of 35,231,944 shares at an issue price of C$0.1703 per share.
The FTS placement is facilitated by Canadian flow-through share dealer, PearTree Securities Inc, pursuant to a subscription and renunciation agreement with American West. PearTree will not receive any fees or commissions from the company for its role in respect of the FTS placement.
The new FTS shares will be issued at a 20% premium to the closing price of American West the day prior to launch of the FTS placement, and at a 37% premium to the secondary sale price of the new FTS shares.
Additionally, the company has received firm commitments under the institutional placement to raise over A$1M through the issue of 7,503,227 shares at an issue price of A$0.14 per share.
American West will use funds raised from the FTS placement for exploration at the Storm Copper project with a focus on exploration and resource drilling.
The funds raised under the institutional placement will be used for exploration activities at the Storm Copper project, for working capital at the company’s other projects, and for general working capital purposes.
Mr. O’Neill continued, “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.”
To find out more, please visit www.americanwestmetals.com
