Stonegate Capital Partners has initiated coverage on American Tungsten Corp. (CSE: TUNG), reflecting heightened investor interest in critical mineral companies during global supply chain uncertainties. The company reported a net loss of C$1.87 million in Q1 2025, compared to C$63.7 thousand year-over-year, primarily due to increased investor relations spending, exploration activity, and corporate development following its rebranding. Despite the loss, total assets grew to C$2.36 million from C$1.46 million in Q4 2024, supported by a cash balance of C$1.25 million after a multi-tranche private placement. Shareholders' equity more than doubled to C$2.04 million, with the company remaining debt-free, providing operational flexibility.
Key expenses included C$663.6 thousand for investor relations, C$191.3 thousand for exploration and evaluation, and C$461.8 thousand in professional fees, aligning with an aggressive ramp-up toward advancing its flagship U.S. project. In July 2025, American Tungsten completed a C$7.0 million upsized private placement, demonstrating strong institutional and insider demand. Proceeds will fund exploration and development at the IMA Mine, a past-producing tungsten-molybdenum asset in Idaho with extensive historical infrastructure. The company also strengthened its leadership by appointing Dennis Logan as CFO and adding CEO Ali Haji to the Board of Directors.
Rehabilitation work has begun at the IMA Mine, with Rockhead Consulting contracted 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. Historical production records indicate approximately 198,000 standard units of WO₃-equivalent and over 2 million pounds of copper, with recent assays showing 0.82% WO₃ over 30 feet and 475 feet at 0.247% MoS₂. Management aims to publish a new NI 43-101 report, initiate targeted drilling, and conduct metallurgical sampling to evaluate near-term production scenarios. The company received conditional approval to list on the TSX Venture Exchange, enhancing capital markets access.
Additionally, American Tungsten's Star Project in British Columbia covers approximately 4,616 hectares and hosts a large, skarn-hosted iron target with potential critical mineral byproducts. A recent airborne magnetic survey identified a significant 1.2 km-long anomaly, with early-stage surface samples returning iron values up to 63.3% Fe₂O₃. While not currently a production focus, the project bolsters the company's critical mineral portfolio. Strategically, American Tungsten is poised to become a domestic tungsten supplier, essential for defense, semiconductors, and electric vehicles, amid tightening global supply and China's 2024 export ban. Its Idaho location offers advantages like low-cost power, water access, paved road entry, and skilled labor, reducing development risks. Management is exploring non-dilutive funding opportunities through the U.S. Department of Defense and Department of Energy, aligning with national critical mineral initiatives.
