69.2 Million AT4N Options Underwritten at 3 Cents Each Ahead of June Expiry
American Tungsten & Antimony Ltd has inked an underwriting deal with GBA Capital to ensure full subscription of up to 69 million AT4N options expiring this month, securing potential capital injection amid its US critical minerals push.
- Underwriting agreement covers 69.2 million options at $0.03 exercise price
- Underwriter to cover any shortfall shares post expiry
- Total underwriting fees amount to 6% of underwritten amount
- Options expire 30 June 2026 with shortfall subscription by 8 July
- Supports capital raising for US antimony and tungsten projects
Underwriting Agreement Secures Potential $2 Million Capital Raise
American Tungsten & Antimony Ltd (ASX:AT4) has entered into an underwriting agreement with GBA Capital Pty Ltd that covers the exercise of up to 69,179,253 unexercised AT4N options, each priced at 3 cents and expiring on 30 June 2026. The agreement guarantees that any options not exercised by holders will be taken up by the underwriter, effectively securing a potential capital raise of approximately $2.08 million before fees.
Mechanics and Fees of the Underwriting Arrangement
The underwriter has the discretion to appoint sub-underwriters and nominate subscribers for any shortfall shares. The shares issued under this arrangement are expected to comply with ASX Listing Rule 7.2 Exception 10, meaning shareholder approval is not required. The company will pay GBA Capital a combined management and underwriting fee of 6% (2% management fee plus 4% underwriting fee) of the underwritten amount, exclusive of GST.
Timetable and Exercise Process
Option holders must exercise their options by 5:00pm AWST on 30 June 2026 by submitting a Notice of Exercise and payment of $0.03 per option. If options remain unexercised by expiry, the underwriter will subscribe for the shortfall shares by 8 July 2026, with an anticipated ASX quotation of these shares on 9 July. This timetable is indicative and subject to change.
Strategic Context for Capital Raising
This underwriting deal comes as American Tungsten & Antimony advances its critical minerals projects in the US, including the flagship Antimony Canyon Project in Utah and multiple tungsten projects across Utah and Nevada. The company is pursuing a vertically integrated supply chain strategy aligned with US government priorities for domestic critical minerals security. Securing this capital through option exercise underpins ongoing exploration and development efforts, complementing recent initiatives such as the high-grade targets at Tennessee Mountain and a A$10 million placement announced last month.
Termination Clauses and Risk Factors
The underwriting agreement includes customary indemnities and a comprehensive list of termination events, ranging from regulatory investigations and material adverse changes to breaches of agreement terms and significant market movements. Notably, a drop of more than 10% in the ASX 300 Index sustained over two days could trigger termination rights for the underwriter. These provisions reflect standard risk mitigation measures but highlight potential vulnerabilities should adverse developments arise before the final allotment date.
Bottom Line?
The underwriting deal ensures a safety net for American Tungsten & Antimony’s capital raise via expiring options, but the ultimate funding boost hinges on option holder participation and market conditions in the coming days.
Questions in the middle?
- What proportion of the 69 million options will be exercised by holders before expiry?
- Could market volatility or regulatory events trigger termination of the underwriting agreement?
- How will the capital raised through this exercise be allocated across AT4’s US project portfolio?
