Stonegate Capital Partners has initiated coverage on American Tungsten Corp. (CSE: TUNG), a move that underscores the growing importance of domestic critical mineral supply chains. In the first quarter of 2025, American Tungsten reported a net loss of C$1.87 million, compared to C$63.7 thousand in the same period last year, reflecting increased investor relations, exploration activity, and corporate development following its rebranding. Total assets rose to C$2.36 million from C$1.46 million in the fourth quarter of 2024, driven by a higher cash balance of C$1.25 million following a multi-tranche private placement. Shareholders' equity more than doubled to C$2.04 million, and the company remains debt-free, supporting flexibility for ongoing exploration.
Key expenses included investor relations (C$663.6 thousand), exploration and evaluation (C$191.3 thousand), and professional fees (C$461.8 thousand), aligning with the company’s aggressive ramp-up toward advancing its flagship U.S.-based project. In July 2025, TUNG completed a C$7.0 million upsized private placement, reflecting strong institutional and insider demand. Proceeds will support exploration and development at the IMA Mine. Concurrently, the company appointed Dennis Logan as CFO and added CEO Ali Haji to the Board of Directors, enhancing financial leadership and governance.
The company also commenced rehabilitation work at the IMA Mine, contracting Rockhead Consulting to reestablish underground access and drill stations. Over 6,000 feet of underground drilling is planned to support a maiden resource estimate and test the molybdenum porphyry system. Additionally, the company received conditional approval to list on the TSX Venture Exchange, signaling continued corporate progress and improved capital markets access.
Located on patented claims in Idaho, the IMA Mine is a past-producing tungsten-molybdenum asset with extensive historical development and infrastructure. The project includes 21 patented claims with road access, water rights, grid power, and underground mine workings. Historical records show production of approximately 198,000 standard units of WO₃-equivalent and over 2 million pounds of copper. Recent assays and legacy intercepts include 0.82% WO₃ over 30 feet and 475 feet at 0.247% MoS₂. Management plans to publish a new NI 43-101 report, initiate targeted drilling, and conduct metallurgical sampling to assess near-term production scenarios.
The Star Project spans approximately 4,616 hectares in British Columbia’s Skeena Division and contains a large, skarn-hosted iron target with potential critical mineral byproducts. A recent airborne magnetic survey identified a significant 1.2 km-long anomaly. Early-stage surface samples returned iron values up to 63.3% Fe₂O₃. Although not yet a focus for production, the Star Project enhances American Tungsten’s critical mineral portfolio and offers future optionality within a favorable jurisdiction.
Looking ahead, American Tungsten aims to advance the IMA Mine through NI 43-101 technical reporting, drilling, and permitting, with a long-term view toward production and molybdenum system delineation. The company’s location in Idaho—offering low-cost power, water access, paved road entry, and skilled labor—reduces development risk and cost. Amid tightening tungsten supply and China's 2024 export ban, American Tungsten is strategically positioned to become a domestic supplier of a metal essential for defense, semiconductors, and electric vehicles. Management continues to explore non-dilutive funding opportunities through the U.S. Department of Defense and Department of Energy, aligning with national critical mineral initiatives.
