Funding Boost for Storm Copper Project Highlights Development Risks Ahead

Funding Boost for Storm Copper Project

American West Metals Limited (ASX – AW1) has announced a successful equity raising of approximately A$5.9 million, forming a key part of a larger A$14.4 million funding initiative aimed at accelerating the development of its Storm Copper Project in Canada. The placement attracted strong support from both domestic and international institutional investors, reflecting growing confidence in the project’s potential.

The funds will be directed towards expanding exploration drilling, upgrading existing resource estimates, and advancing pre-feasibility studies. This capital injection complements recent funding secured from Taurus Royalty Fund and Ocean Partners, which together form a robust financial foundation for the company’s 2025 work programs.

Exploration and Development Strategy

The Storm Project sits within a highly prospective 110-kilometre copper belt, of which only about 5% has been explored to date. American West Metals plans to intensify exploration efforts along the Midway-Storm-Tornado corridor, targeting large-scale, walk-up drill targets supported by geophysical anomalies and surface copper indicators.

Recent exploration in 2024 yielded several new discoveries, and the company aims to build on this momentum by focusing on resource expansion and definition drilling. The Preliminary Economic Analysis (PEA) completed earlier this year highlighted the project’s potential as a low-capital, long-life mine with attractive economic returns, setting the stage for a Pre-Feasibility Study (PFS) to refine development plans.

Share Purchase Plan and Investor Participation

Alongside the placement, American West Metals is launching a Share Purchase Plan (SPP) to raise up to A$1 million from existing eligible shareholders. The SPP offers shares on the same terms as the placement, allowing shareholders to invest up to A$30,000 without brokerage fees. The company has indicated that directors intend to participate in the SPP, signaling management’s confidence in the project.

Placement participants will also receive options exercisable at A$0.06 per share, subject to shareholder approval, providing additional upside potential. The company’s joint lead managers, Alpine Capital and Blue Ocean Equities, facilitated the placement and will receive fees and options as part of their engagement.

Strategic Partnerships Strengthen Project Outlook

American West Metals’ strategic partnership with Ocean Partners is a significant milestone, with Ocean Partners committing to provide up to 80% of the initial development capital and technical support. This collaboration underscores the Storm Project’s position as a viable, low-risk copper-silver development with strong environmental, social, and governance credentials.

Additionally, the royalty financing agreement with Taurus Royalty Fund has already delivered milestone payments, with further payments contingent on resource expansion. These partnerships not only provide financial backing but also enhance the project’s technical and commercial prospects.

Looking Ahead

With the new funding secured, American West Metals is poised to execute an aggressive exploration and development program throughout 2025. The company’s focus on expanding mineral resources and advancing pre-development studies aims to unlock the full potential of the Storm Copper Project, potentially positioning it as a significant copper producer in North America.