American West Metals Ltd (ASX: AW1), an Australian company focused on discovering and developing major base metal mineral deposits in North America, has announced it will raise A$7.0 million through a placement of fully paid ordinary shares to institutional, sophisticated, and professional investors. The placement price of $0.045 per share represents an 18% premium to the 30-day VWAP, reflecting investor confidence in the company’s growth strategy. Tribeca Investment Partners, a specialist in backing growth companies in the resources sector, has provided a strategic investment of $2 million as part of the placement.
The funds raised will be primarily directed towards advancing the critical metals strategy at the company’s 100%-owned West Desert Project. This project already hosts significant JORC-compliant resources for indium, zinc, silver, copper, and gold, and exhibits strong potential for defining substantial gallium and molybdenum resources. All permits are in place for drilling follow-up targets for indium, gallium, silver and other critical metals.
West Desert is the largest and highest-grade indium resource in the United States, holding strategic importance given indium’s critical role in semiconductors, solar panels, and other high-technology products. The company is actively engaging with US agencies to potentially access government grants, low-interest loans, and price floor commitments to support domestic production, as outlined by the Trump Administration’s policy framework favouring domestic critical metals production. Subject to shareholder approval, participants in the placement will also receive one free attaching option for every two shares subscribed.
American West Metals Managing Director Dave O’Neill stated that the company is continuing engagement with USA government agencies to explore opportunities for funding support to advance the West Desert Project and shareholders can expect further news on this exciting project in the coming weeks. GBA Capital Limited acted as Lead Manager to the Placement and will receive a fee of 6% on the amount raised, plus 20 million AW1O series options.
